Retirement Planning

Estate Building with Income Riders

I'm sure everyone has used the ol' fund a life policy using a life only spia to build a clients estate. The down fall of this concept is you sacrifice your liquidity and control of your money. Now if you could use the same concept and still maintain control and liquidity of your clients money, we would be talking something very important to anyone’s retirement plan. Let’s use a quick example. Joe Client is 65 yrs old and has $500,000.00 in retirement assets. He is using $350,000.00 to supplement his retirement income. That leaves Joe Client with $150,000.00 that he wants to leave to his two children. If he grew that money at 3% for 20 yrs his value would be $270,916.69. Now let’s look at taking that same $150,000.00 and putting it into an income rider product. We take and let that grow for one year with a big bonus and his income payment would be $9,984.31 per year guaranteed for the rest of his life. Then we get him approved for a Guaranteed No Lapse UL policy. That would give him $375,000.00 of tax free life insurance to pass on to his kids. If Joe Client used all of his $350,000.00 during retirement he would still be leaving over $500,000.00 to his kids. That makes for a pretty strong story. Joe does not have to worry about saving and not enjoying his retirement income because he knows that his kids/grandkids are going to be receiving a really nice inheritance. Dustin J Weaver ACS PCS AAPA Marketing Director Capital Care America

Published Monday, January 18, 2010 3:44 PM by Dustin Weaver