BeamaLife Retirement Savings Plan
(Compare with Roth 401(k) & Roth IRA)
You might have a very idealistic vision of retirement, doing all of the things that you never seem to have time to do now. But how do you pursue that vision? Social Security may be around when you retire, but the benefit that you get from Uncle Sam may not provide enough income for your retirement years. And few employers today offer a traditional pension plan that guarantees you a specific income at retirement. On top of that, people are living longer and children are no longer your retirement support hence you must find ways to fund those additional years of retirement.
Such eye-opening facts mean that sound retirement planning is critical. At the same time, you hear the horror stories of people losing their nest egg in the stock market or in some other speculative investment. There are some tax-efficient investments, but they are limited--for example, the IRA and the 401(k).
We at BeamaLife are committed to bringing you innovative saving vehicles that provide the benefits of Roth IRAs and Roth 401(k)s without their limitations. Cash value life insurance policies are a great way to supplement retirement funds for either early or late retirement. They guarantee returns so you can stop worrying about stock market risk. They provide additional benefits, such as life insurance and disability benefits with a very good return. Let's understand more by following a hypothetical illustration.
Mr. John Doe is 40 years old, married with two children, and worried about his retirement savings, children's college expenses , and his family's well-being should he die prematurely.
Retirement Savings Supplement Using Cash Value Life Insurance
If John Doe saves $12,000 per year in the form of premium payments for the next 25 years, his total savings in his whole life insurance policy would be $300,000 ($12,000 x25 years). This savings could provide:
| Pre-Retirement Life Insurance |
| $567,291 if he dies at age 40 |
| $974,522 if he dies at age 65 |
| Retirement Benefits at Age 65 |
| $38,929 annual initial after-tax retirement benefit |
| Total Retirement Benefits Paid Over the Next 25 Years |
| $973,225 total after-tax Income ($38,929x25 years) |
| Post-Retirement Life Insurance |
| $389,424 if he dies at age 90* |
How the Retirement Savings Supplement Using Cash Value Life Insurance Works:
- It is funded by a cash value life insurance policy, which can operate like a Roth IRA or a Roth 401(k)
- It can provide you with supplemental retirement income and protect your family if you die.
- It is tax-preferred. Under current tax law, values build up in a tax-deferred manner until withdrawn. Death benefits can be received free of income and estate tax if structured in the right manner. It is an amazingly powerful tool for a retirement savings plan.
- Using policy loans, policy values may be used in part to meet "Life Cycle" demands--retirement supplements, education funding, etc.--without income tax or 10% IRS penalty on withdrawal.
- It offers flexible options at retirement: Retirement income can be received as planned, or the schedule and amounts can be changed. Values can be annuitized to provide income for life.
Request your personalized retirement supplement proposal
.Note: This example is based on a highly rated insurance company's whole life illustration for a 40-year-old at a preferred non-smoker rate. *Life expectancy was calculated using a specified age of 90. John Doe is assumed to be in the 30% tax bracket. This illustration is not valid unless accompanied by or preceded by a Basic Illustration dated 9/07/2008. Refer to the Basic Illustration for guaranteed elements and other important information
