I have written many times about the challenges seniors and their families will be confronted with in the future. If you’ve seen my speeches, you know that I tend to overwhelm my audiences with information that signals higher taxes and lower benefits. I do the same with my prospects and clients.

The Congressional Budget Office reports that this country’s indebtedness will also become overwhelming in less than a decade. Interest on our debt will exceed all other non-defense spending by 2018. An enormous crisis awaits our children, grandchildren and great-grandchildren. Building wealth will be difficult if not impossible for our heirs.
My presentation focuses on the enormous financial challenges all Americans will face. I spend additional time with my seniors. I paint word pictures of the hardships their loved ones will endure.

So what can I do?
Finally, I ask, “If I could show you a way to increase the inheritance your heirs would receive and still keep you in complete control of your money until you die, would you talk to me about it? If we could also provide a rate of return similar to your CD, would you talk to me about it?”

This is crucial. We must explain that, with very little effort, our seniors can provide increased wealth to their heirs with little change to their circumstance. This is an easy sell.

The miracle

What is this miracle? A modified endowment contract, also known as single-premium life insurance. These insurance policies can provide returns similar to Certificates of Deposit while leveraging a tax-free death benefit for their heirs. MECs behave like annuities while our clients are living. The interest is taxed last-in, first-out. If the client requires income at a later date an MEC can be annuitized. The income stream would be taxed as a return of principle and interest. This is a beneficial option if our client depletes all his other retirement monies. Finally, if the contract remains in force, a leveraged, tax-free death benefit will be made available to our client’s family.

With interest rates remaining low, single-premium life insurance provides a golden opportunity for our seniors. MECs earn a return similar to their CDs and, using the miracle of leveraging, they provide significantly larger benefits to their heirs. The only reason seniors don’t buy them is because they don’t know about them. Tell them.