Martha Miller is 82 years old and has $3 million in assets, is in good health and is in the 35% tax bracket. Martha has $1 million invested in CDs and bonds at a 4.74% rate, yielding pretax income of $47,400 per year. After paying income taxes of $16,590, she would be left with after tax spendable cash of only $30,810 per year. If she should die in 2007, her heirs would have to pay an estate tax of $450,000.

Martha could purchase an immediate annuity for $1 million and, at the same time, purchase a $1 million life insurance policy inside a life insurance trust.

If Martha should die in 2007, her heirs would save $450,000 in estate taxes.

If Martha lives, she would receive $140,978 per year for the rest of her life from the annuity.

• After paying life insurance premiums of $59,790 per year, she would be left with pretax income of $81,188 per year.
• This represents a pre-tax "raise" of $33,788 a year, guaranteed* no matter how long she lives!
• This approach offers substantial income tax advantages, which our planner will explain.

* Guarantees extend to the claims paying ability of the issuer.