Providing for the next generation
MD Life Plan is a simple way to provide substantial assets and an established life insurance policy to your loved ones on a tax-preferred basis. For example, an MD Life Plan policy can be established with a grandchild as the life insured and your child as contingent owner. During your lifetime or upon your death, your child becomes the owner of your cash-rich insurance policy and an established life insurance portfolio of investments. Alternatively, you could structure the policy such that it could be transferred to your grandchild before your death, allowing your grandchild to use the cash-rich policy to help pay for his or her education costs. If the grandchild is over age of majority at the time, he or she is responsible for any taxes due as a result of withdrawals from the policy.
Covering taxes with heirs' money
You may want to make provisions to cover estate taxes and fees, but don't want to fund the solution yourself. Your MD Life Plan policy can be structured to allow your heirs to pay the premiums into a policy on which you are the insured. The proceeds from the policy can cover taxes and fees and still provide additional money for your heirs, without costing you anything.
To learn more about providing for your family with MD Life Plan, contact your MD Management Financial Consultant or call 1 800 267-2332 to be put on touch with a MD Management office near you.
