A required minimum distribution (RMD) is the amount that you must begin withdrawing from your IRA or other qualified account after you reach age 70 ½. According to The Wall Street Journal, 38% of people reinvest their required minimum distributions (RMDs) and 41% use them for day-to-day expenses.1 But did you know that you can provide your loved ones with the gift of financial security by using your RMDs to purchase life insurance?
By purchasing Gleaner’s RMD Life now, you can use the guaranteed insurability option to purchase additional coverage from ages 70 to 80 without proving your insurability. When you begin taking RMDs after age 70 ½, you can use the distributions to purchase additional single-premium whole life certificates, slowly building financial security or an inheritance for your loved ones. Each new certificate can have a different beneficiary or the same beneficiary. You don’t have to purchase more life insurance each year, but each additional certificate will increase the gift you will one day pass on to your heirs.
1The Wall Street Journal, June 1, 2015.
When can I begin using the benefits of RMD Life?
If you purchase RMD Life from ages 65 to 70, you can begin building additional life insurance coverage at age 70.
If you purchase RMD Life from ages 70 to 75, you can begin building additional life insurance coverage immediately.
You don’t have to purchase additional coverage every year, but once you begin using this unique RMD Life GIO feature at age 70, you will need to purchase additional coverage every 36 months, or you will lose the ability to purchase more life insurance.
You can purchase additional coverage once per year with a maximum of 10 additions.
Issue ages: 65-75
Minimum face amount: $10,000
Maximum face amount at issue: $50,000
Purchase additional coverage: ages 70-80
Minimum face amount for additional certificates: $2,500
Maximum total coverage: $100,000
- Paid-up additions
- Paid in cash
Guaranteed Insurability Option: Allows you to purchase additional single-premium whole life certificates from ages 70-80 without underwriting