How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Rakhi Vasavada Your Own Question
Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4448
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
Type Your Finance Question Here...
Rakhi Vasavada is online now
A new question is answered every 9 seconds

myfather is 83 yrs old he has a fixed annuity that pays 2.5%.

Resolved Question:

myfather is 83 yrs old he has a fixed annuity that pays 2.5%. His goal is to pas on as much as he can to the children. he wants to see if he can get a better rate wth another annuity. So i checked it out and i was told a fully paid up whole life policy would pas on more and the children would not have pay taxes onthe income? i wander if an 83 yr old can get awhole life policy? I have two companies that have been recomended. American United Life and Assurity life. What should I do?
Submitted: 5 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 5 years ago.

Dear Friend,


YES.. Whole life insurance policies are usually issued up to age 85. So, you father would be eligible for it. Both of the companies issue whole life policy up to age 85.


Regarding the tax implications, his heirs should not have to pay income tax on life insurance payouts (as you may have found out when looking for life insurance rate quotes). Only under certain circumstances where the insurance was purchased through an employer will you be subject to income tax. You can find out details specific to your situation when you get life insurance rate quotes.


Also there would be no Estate Tax payable given the value of estate below 5 Million USD.


I hope this helps...

Warm Regards,

Rakhi Vasavada and other Finance Specialists are ready to help you

Related Finance Questions