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Show QUESTION: I own a one-man advertising agency (with only a secretary) and am planning to .set up a pension plan. Will life insurance be an aid i.i this and, if so, how? ANSWER: Your pension plan may be a "qualified" plan, with the premiums deductible for tax purposes, or "unqualified," "unquali-fied," which, in effect, is an informal plan. You should discuss dis-cuss with your agent which type will best suit your circumstances, circum-stances, for there are advantages advan-tages to both. Either way it pays to include life insurance in the plan. One reason is that you probably lack the substantial amounts of group life insurance provided by large corporate employers, and this lack can be filled by having your own life insurance. Equally important, the life insurance assures you that the cash built-up in the plan can be paid out at retirement in a guaranteed lifetime income at today's favorable annuity rates. Considering the tremendous medical advances presently being be-ing made, the guaranteed annuity annu-ity rates in the life policies may well be one of today's greatest bargains. Since life insurance can be included in pension plans in several different ways, it will be necessary to obtain from your insurance advisor the details de-tails as they apply to your circumstances. |