Bright idea!

Supplement your retirement income and leave a legacy to the kids.

• William and Janice are both 65 and healthy.
• They are retired and living off their pensions.
• They recently sold their large home and moved to a condo, closer to their children and grandchildren.
• The sale of their home has produced $600,000 in excess funds.

• Supplemental retirement income.
• Bequest to their children.

• Step 1: William and Janice purchase a low-cost Term-100 joint last-to-die insurance policy.
• Annual premium: $7,988.
• Step 2: William and Janice purchase a prescribed joint and last survivor annuity with no guarantee period and no reduction of income on death of either annuitant in order to achieve the highest income.
• Single Premium: $600,000 (from sale of house).

• Annuity provides $40,658 annual income as long as one of the couple is alive.
• On the death of William and Janice, $600,000 tax-free proceeds from life insurance policy are paid to children and grandchildren.
• The couple has created a supplement to their pension with preferential tax treatment, and left $600,000 tax-free dollars to their beneficiaries.