If one were to use their Social Security benefits to fund a life insurance policy, they would want to make sure that the policy is a “permanent” life insurance policy, rather than term life insurance.Regarding life insurance, it's interesting that one friend's neighbor, who was basically in the money, told him how the very wealthy sometimes think about Social Security.
The idea is to get a large, lengthy life insurance policy and pay for it using Social Security benefits. Sure, it cost thousands per month, but it creates a legacy with no tax implications (except for interest, if I recall correctly). Of course, one would need to be in good health to go this route.
At the older ages, term life insurance isn’t available for longer terms. For example, I couldn’t find that a 65 year old could buy a 30 year term policy.
There would be nothing worse than paying for a term life policy for (20) years, and then having it expire before you do.
A person could buy a whole life or universal life policy to do what you’re talking about. But the cheapest policy would likely be a “guaranteed universal life” policy.
Not recommending this strategy. Just commenting on the cheapest way to execute it.
Statistics: Posted by Stinky — Tue Nov 05, 2024 11:24 am