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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4543
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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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,

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