Solution:

Outcome:

Kyle decided to contribute 5% of his salary or $200 a month to his plan. This is an amount he planned to contribute to a 401k if it were available. 

With this, he secured $238,000 in immediate permanent life insurance with Living Benefits. He is also accumulating cash, TAX FREE in his plan. He also has access that money at any time, TAX FREE. 

 At age 67, Kyle is projected to have $462,000 available to fund his retirement. If he waits until age 70 to start drawing income, that number is projected to be $553,000. 

 If he increases his premiums as his income grows over time, he can accumulate significantly more for his retirement

Solution:

We proposed a two-step solution for Jennifer: 

Step 1 – Place 25% of her coverage in permanent cash value life insurance.

Step 2 – Place 75% of her coverage in a term policy with Living Benefits for 20 years.

Outcome:

By placing 25% in permanent cash value coverage, Jennifer locks in $195,000 in permanent coverage at a young age while it's more affordable. 

She will have the added benefit of tax free cash accumulation which can serve as an emergency fund going forward or it can be converted to a tax free income stream in retirement. 

At $585,000, the term policy then carries the bulk of the coverage for 20 years at a much more affordable rate than full permanent coverage. The term policy also comes with Living Benefits which means she can tap up to 90% of the death benefit while she is still alive if she were diagnosed along the way with a terminal, chronic, or critical illness. It even covers critical injuries. 

When her daughter turns 24, the term policy expires. Jennifer will be 53 years old and in her highest income earning years. She will have the option to contribute more money into her permanent coverage boosting her tax free cash accumulation for future needs.

Solution:

We matched John with a $100,000 whole life policy with a one-time premium of $9,107. 

This was the maximum her could obtain with his medical condition, but he also qualified for a single premium paid up rider of $200,000. This allowed John to purchase significantly more life insurance. 

John’s one time combined premium of $209,107 yielded a fully paid up life insurance policy for more than $490,000.

John was left with $90,893 out of his original $300,000. We recommended a Single Premium Indexed Annuity which gave John full protection of his principal while allowing him to grow his money over time – tax deferred. 

 John’s annuity also came with a Legacy Death Benefit rider which created a stronger death benefit for his family.

Outcome:

John converted nearly 70% of his inheritance into paid up life insurance generating over $490,000 in immediate death benefit – tax free.

He placed the other 30% into an annuity which allowed him to grow his remaining inheritance tax deferred.

The combined outcome is that John converted $300,000 into $587,496 in immediate death benefits for his family.

Solution:

We proposed a two step solution for Sally: 

Step 1 – Move the existing $800,000 into an income annuity which allows her to lock in her current market gains and avoid market losses going forward.

Step 2 – Draw down the annuity over a 10-year period converting the after tax proceeds of each distribution into annual premiums for a whole life policy.

Outcome:

By securing her IRA with an annuity, Sally locked in her gains and protected herself from market losses going forward. 

 By drawing down the annuity and converting the distributions into annual life insurance premiums, Sally will have a paid up policy after 10 years. 

Her beneficiaries will receive the death benefit TAX FREE when she passes. Sally also has access to living benefits in her policy which allows her to tap a significant amount of the death benefit if she is diagnosed with a terminal, chronic or critical illness along the way.