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Can I Find a Better Option for My CD Money?

Written By: Alan D. Marx, CLU, ChFC | Retirement Planning Specialist

Many of today’s retirees have done an excellent job of saving, and they are enjoying a comfortable life style pursing those things they want to do rather than those that they have to do.  They are living off of a combination of income streams.  They have pensions, social security, and in some cases, some withdrawals from IRAs and annuities.  They also have liquid saving s in an amount necessary for any unexpected emergencies.  Finally, they have money that they may or may not need later in life, but really plan to leave for their children or grandchildren.

This additional savings is often invested in CDs.  That way they maintain control, and can get at the money if it is needed quickly.  Unfortunately at today’s interest rates a CD can actually lose value.  With a less than 1% return and the taxes that must be paid on that meager return, the net growth in value is often less that of our increasing cost of living.  By the time it is passed to the next generation, the purchasing power of a $50,000 CD can easily be far less.  Is there alternative that can increase the real value of a CD and still be available if the money should be needed?

The answer to the question is yes. There are a number of choices that fall under the heading of a single premium life insurance policy.  The CD money is deposited in a policy.  The value is immediately increased by 30-100%, and it becomes a death benefit for the owner’s heirs.  Any future growth is income tax deferred to the owner, and the death benefit can pass income tax free to the beneficiaries.  Policies are issued with limited underwriting.   That means no exams, no blood draw, and in many cases no medical records.  Usually, all that is needed is that the candidate answer 10-20 general health questions.  Policies can be issued within 48 hours of application. If later on the owner should need the money, up to 90% of the death benefit may be available.  If you are looking to make better use of your CDs or other after tax saving, a single premium life insurance policy might be just the right choice.

For more information about this option, or if you have other questions about your options during retirement, please contact me at or (248) 894-0889.

About the Author: Alan has over 30 years of experience working in financial services.  The last 10 plus years he has focused on helping clients answer the questions and solve the problems that confront them when they decide to stop working and enjoy the “fruits of their labor”. 

Annuity123 is an educational platform only.  Annuity123 does not offer insurance, investment, or tax advice.  You should always seek the guidance of qualified and licensed professionals concerning insurance, investment, or tax matters.


  • Good post. If you think about how long it would take money to double only earning 1% interest, having the potential to double the value (or possibly more) instantly for your family is worth considering.

    • Alan Marx says:

      Carl is correct. In fact, if we use the “Rule of 72”, it would take 72 years for a 1% return to grow to double the original investment. That is the case if you aren’t paying taxes on the 1%. The “Rule of 72” works like this: You divide the interest rate you are getting into 72, and the answer is the number of years it will take to double your money.

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