(ARA) - When it comes to leaving your children a legacy, deferring taxes and setting aside some cash for emergencies, you really can have it all: Consider single premium life insurance.

Single premium life insurance (SPL) requires you to make an initial lump-sum payment in return for a death benefit that is guaranteed to remain paid-up until you die (although unpaid policy loans can cause the policy to lapse). So if you have a lump sum of cash that you don't need right now, or you need a significant tax deferment, SPL may be for you. SPL offers:

* Guaranteed protection for your loved ones in the form of a death benefit that will never decrease and is tax-free

* Tax deferred growth of your money

* A source of emergency funds

While the tax-free death benefits provided by SPL plans compete very favorably with other investment vehicles such as certificates of deposit and fixed and equity annuities, life insurance is the only financial vehicle that provides tax-deferred growth and tax-free disbursement at death.

Significant Boost to Estate

Of course, the more you initially pay in premium to your policy, the greater your death benefit will be - and the greater will be your estate available to your heirs.

With SPL, a lump-sum premium payment will typically immediately secure a significant amount in coverage. For example, a 60-year-old female might use a $25,000 single premium to provide a $50,000 income-tax free death benefit to her beneficiaries. A 50-year-old male's $90,000 single premium might give a $238,000 benefit. Plus, an SPL policy can increase significantly over time and provide tax-deferred benefits.

Unexpected Expenses

While the death benefit provides an efficient (and potentially substantial) means for you to provide for your dependents, you also need to consider unexpected expenses that can crop up as you grow older. Some SPL plans offer an accelerated death benefit for terminal and chronic illnesses and a liquidity rider so you can take money out at no charge if needed for certain circumstances.

For example, Mutual of Omaha's SPL plan will provide 50 percent of the death benefit when your life expectancy is less than 12 months. The remaining death benefit will be payable to your beneficiaries upon your death. In case of a chronic illness, up to 80 percent of the face amount of the policy is available to you as a lump-sum payment.

Also, for certain conditions - such as entering a nursing home or hospital for 30 days, suffering certain illnesses, unemployment for 60 days, death of a spouse, and other conditions - Mutual of Omaha will waive any charges for withdrawing money from your SPL plan. Mutual offers the accelerated death benefit rider and liquidity rider at no charge.

To learn more about single premium life insurance, visit www.mutualofomaha.com.

Courtesy of ARA Content