Mr. John Doe is 35 years old, married with two young children, and worried about his retirement savings, his children’s college expenses, and his family’s wellbeing should he die prematurely.
By using whole life insurance as a retirement savings supplement, John Doe is able to take care of most of his concerns. If John Doe saves $500 per month ($6,000 per year) in the form of whole life insurance policy premium payments for the next 30 years, his policy could provide:
How does it work?
- This plan is funded by a whole life insurance policy, which operates like a Roth IRA or a Roth 401(k).
- This plan will provide you with supplemental retirement income and also protect your family with life insurance protection if you die in between.
- This life insurance policy is a tax-deferred plan. Under current tax law, cash values inside the whole life policy build up in a tax-deferred manner until withdrawn. Using the policy loans provision, you can use the cash value for any “life cycle” needs like retirement supplement, education, etc. without income tax or any IRS penalties on withdrawal. It is a very powerful savings tool when used for retirement savings.
- It offers flexible options at retirement: Retirement income can be received in regular payments or taken out as needed. Cash values can be annuitized to provide income for your entire life.
- This whole life plan also includes a “waiver of premium” rider, so if you become totally disabled during the funding period, the life insurance company will pay the premium until you retire (up to age 65).
- Death benefits can be received free of both income and estate taxes if structured correctly.
Whole life insurance provides your intended retirement income at retirement age along with valuable life insurance protection that will take care of you and your family if you become totally disabled. Please call (866) 972-3262 to speak with one of our retirement specialists or request your personalized retirement supplement proposal now.
Note: This example is based on a highly rated insurance company’s whole life illustration for a 35-year-old at a preferred best non-smoker rate. *Life expectancy was calculated using a specified age of 90. John Doe is assumed to be in the 28% tax bracket. This illustration is not valid unless accompanied by or preceded by a Basic Illustration dated 10/23/2009. Refer to the Basic Illustration for guaranteed elements and other important information.
