Is there a SAFE alternative to CDs?

With CD rates at 1% in most scenarios, your clients are looking for SAFE alternatives that will yield a better return on their money. Tax deferred annuities are certainly an alternative with modest fixed interest rates.

Introduce your clients to Single Premium Life insurance. Various life products can leverage income tax free money to your client’s family. Let's look at a High Cash Value Single Premium Life (HCV-SP) product, below.

$50,000 Outlay


HCV-SP Life Insurance

CD-Type Investment

Year Age Net Cash Value Tax-Free Proceeds on Death Net Cash Value Tax-Free Proceeds on Death
1 66 45,910 93,223 50,375 50,375
2 67 48,591 94,621 50,753 50,753
3 68 50,650 96,041 51,134 51,134
4 69 52,776 97,482 51,517 51,517
5 70 54,971 98,944 51,904 51,904

Notice the cash value at the end of 5 years in the HCV-SP Life product ($54,971). The cash value for the CD (at 1%) is $51,904.

Over the 5 year time period, the client carried $98,944 in life insurance. If the client decided to access the cash in 5 years, they would have made $3,067 more than if the money had sat in the CD.

HCV-SP Life Insurance is safe and protects the client’s family as it grows at a greater rate than the CD. Your client base is seeking safe alternatives on money that sits in the bank making minimal interest. Why not offer Single Premium Life Insurance as that safe alternative!

Contact me for details.

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