This document discusses how life insurance can be viewed as an asset within an individual's portfolio. It notes that while life insurance is traditionally thought of as a means to financially protect one's family, it also has the potential to offer tax advantages as a savings and investment vehicle. The document outlines some key advantages life insurance can provide as an asset, such as leveraging premium payments into a sizable death benefit, providing access to cash value that can supplement retirement income, and allowing wealth to be transferred tax-free via its death benefit. It also discusses how life insurance compares to other tax-advantaged assets like Roth IRAs, Roth 401(k)s, municipal bonds, and cash value life insurance in terms of various federal tax
This document presents an uncommon approach to financial decision making using a living balance sheet framework. It summarizes that traditional needs/goal planning has problems, is inefficient and requires guesswork. Instead, it advocates assessing a client's full financial picture including assets, liabilities, protection, and cash flow to achieve optimal financial balance. The living balance sheet approach provides tools to gather client data, offers strategic solutions, and creates action steps to implement decisions for improved long-term financial results.
This document discusses how life insurance can help achieve retirement goals by providing tax advantages. It notes that life insurance builds cash value on a tax-deferred basis that can supplement retirement through tax-favored loans and withdrawals. The document provides an example of a couple using policy withdrawals in retirement to lower their taxes while funding special expenses. It highlights the benefits of leveraging a life insurance policy for retirement through its death benefit, tax-deferred growth, and potential access to cash values.
Public pensions are on the verge of exploding municipal and the state budget in coming years.
Generational theft is a strong language, but Richard Dreyfus, Senior Fellow at the Commonwealth Foundation beleives that this looming timebomb" has the potential to bankrupt our cities and our state. He made complelling arguments and marshalled the facts to present a simple, compelling and thought provoking presentation.
The document discusses how a life insurance retirement plan can help clients diversify their tax liabilities in retirement. It notes that 2/3 of investors doubt they will have enough money saved for retirement and many may rely on non-retirement accounts. It then presents a case study of a business owner client who is a good saver but may face challenges with financial vulnerability, outliving savings, and rising taxes. The document argues that using life insurance can provide tax-free death benefits and help mitigate losses from potential future tax rate increases on other retirement assets like 401ks, stocks, and mutual funds.
The document discusses preparing for retirement with a variable annuity product called the Northwestern Mutual Select Variable Annuity. It outlines key features like tax-deferred growth, guaranteed death benefits, and options for guaranteed retirement income. Concerns around running out of money, health costs, and inflation in retirement are addressed through the annuity's features and investment options.
A New Arrow for The Pension Practitioners Quiver: Pension Risk TransferJay Dinunzio
Webinar Presentation Slides
Gone are the days of group annuity contracts only being able to satisfy the plan termination objectives of a pension plan sponsor. Today, there are a wide variety of useful applications for guaranteed institutional annuity contract structures to provide an alternative to traditional fixed income investments. Are you or your pension clients:
•Struggling with cost and volatility issues surrounding a defined benefit pension plan?
•Considering a liability driven investment strategy that will de-risk the plan investment and allow for stable, predictable funding?
•Limited by fixed income funds that only allow for simple duration matching, and expose the plan to cash flow mismatch risks?
•Unaware of the variety of customized institutional insurance contract structures available?
•Lacking a fiduciary process for evaluating and monitoring the attractiveness of insured pension solutions?
Tax Diversifiying Your Retirement Income Ppt 14400 0409 Fgranimal87
- Retirement income sources have changed from defined benefit pensions and Social Security to increased reliance on personal savings and assets
- Social Security alone is not enough to cover basic retirement expenses and its future is uncertain
- Fewer employers offer pensions and 401k plans have contribution limits
- Personal assets are critical but taxes need to be considered for different savings vehicles
- Diversifying retirement savings across tax-advantaged accounts and life insurance can help reduce taxes in retirement
This article discusses private third-party pension sponsorship (3PPS) in the UK and how it can benefit both individuals and society. It provides an example of how 3PPS could help a man named George achieve his pension savings goals. It then discusses how 3PPS sponsors could invest in areas that boost the UK economy like infrastructure, property development using new technologies, and social housing. The article argues 3PPS has the potential to create pensions funds that wouldn't otherwise exist, lower dependency on the state, and redistribute wealth across generations.
This document presents an uncommon approach to financial decision making using a living balance sheet framework. It summarizes that traditional needs/goal planning has problems, is inefficient and requires guesswork. Instead, it advocates assessing a client's full financial picture including assets, liabilities, protection, and cash flow to achieve optimal financial balance. The living balance sheet approach provides tools to gather client data, offers strategic solutions, and creates action steps to implement decisions for improved long-term financial results.
This document discusses how life insurance can help achieve retirement goals by providing tax advantages. It notes that life insurance builds cash value on a tax-deferred basis that can supplement retirement through tax-favored loans and withdrawals. The document provides an example of a couple using policy withdrawals in retirement to lower their taxes while funding special expenses. It highlights the benefits of leveraging a life insurance policy for retirement through its death benefit, tax-deferred growth, and potential access to cash values.
Public pensions are on the verge of exploding municipal and the state budget in coming years.
Generational theft is a strong language, but Richard Dreyfus, Senior Fellow at the Commonwealth Foundation beleives that this looming timebomb" has the potential to bankrupt our cities and our state. He made complelling arguments and marshalled the facts to present a simple, compelling and thought provoking presentation.
The document discusses how a life insurance retirement plan can help clients diversify their tax liabilities in retirement. It notes that 2/3 of investors doubt they will have enough money saved for retirement and many may rely on non-retirement accounts. It then presents a case study of a business owner client who is a good saver but may face challenges with financial vulnerability, outliving savings, and rising taxes. The document argues that using life insurance can provide tax-free death benefits and help mitigate losses from potential future tax rate increases on other retirement assets like 401ks, stocks, and mutual funds.
The document discusses preparing for retirement with a variable annuity product called the Northwestern Mutual Select Variable Annuity. It outlines key features like tax-deferred growth, guaranteed death benefits, and options for guaranteed retirement income. Concerns around running out of money, health costs, and inflation in retirement are addressed through the annuity's features and investment options.
A New Arrow for The Pension Practitioners Quiver: Pension Risk TransferJay Dinunzio
Webinar Presentation Slides
Gone are the days of group annuity contracts only being able to satisfy the plan termination objectives of a pension plan sponsor. Today, there are a wide variety of useful applications for guaranteed institutional annuity contract structures to provide an alternative to traditional fixed income investments. Are you or your pension clients:
•Struggling with cost and volatility issues surrounding a defined benefit pension plan?
•Considering a liability driven investment strategy that will de-risk the plan investment and allow for stable, predictable funding?
•Limited by fixed income funds that only allow for simple duration matching, and expose the plan to cash flow mismatch risks?
•Unaware of the variety of customized institutional insurance contract structures available?
•Lacking a fiduciary process for evaluating and monitoring the attractiveness of insured pension solutions?
Tax Diversifiying Your Retirement Income Ppt 14400 0409 Fgranimal87
- Retirement income sources have changed from defined benefit pensions and Social Security to increased reliance on personal savings and assets
- Social Security alone is not enough to cover basic retirement expenses and its future is uncertain
- Fewer employers offer pensions and 401k plans have contribution limits
- Personal assets are critical but taxes need to be considered for different savings vehicles
- Diversifying retirement savings across tax-advantaged accounts and life insurance can help reduce taxes in retirement
This article discusses private third-party pension sponsorship (3PPS) in the UK and how it can benefit both individuals and society. It provides an example of how 3PPS could help a man named George achieve his pension savings goals. It then discusses how 3PPS sponsors could invest in areas that boost the UK economy like infrastructure, property development using new technologies, and social housing. The article argues 3PPS has the potential to create pensions funds that wouldn't otherwise exist, lower dependency on the state, and redistribute wealth across generations.
The 2010 annual report for Northwestern Mutual summarizes the company's strong financial performance in 2010. Some key points include:
- Total surplus grew $3.4 billion to $17.6 billion and policyowner dividends approved for 2011 were nearly $4.9 billion.
- Total revenue was $23.1 billion and total assets were $180 billion, increases of 8% and 8% respectively from 2009.
- Northwestern Mutual maintained the best possible financial strength ratings from the four major rating agencies.
The report highlights how the company continued to deliver superior financial value to policyholders while keeping a strong focus on helping customers plan for long-term financial security even during a time of economic uncertainty.
The document discusses the benefits of fixed annuities for retirement planning. It notes that retirees face significant financial challenges, including rising healthcare and living costs. Fixed annuities offer guaranteed returns, provide a stream of income for life, and allow for tax-deferred growth. Immediate annuities provide guaranteed lifetime income, while deferred annuities allow for long-term accumulation of assets on a tax-deferred basis before receiving income.
This document is the 2009 annual report for Northwestern Mutual. It summarizes the company's financial results for 2009, highlighting that despite volatility in financial markets, Northwestern Mutual paid over $4.7 billion in policyholder dividends, an increase of 4% from 2008. The report also features interviews with several policyholders who felt financially secure during the economic downturn thanks to their policies and relationships with Northwestern Mutual financial representatives.
Whole life insurance provides long-term value to policy owners in three ways:
1) It guarantees a level death benefit, level annual premium payments, and increases in cash value.
2) It provides permanent life insurance protection as long as premiums are paid.
3) The cash value builds over time and is not affected by market conditions, providing lifetime coverage with guaranteed level premiums.
This document provides an overview of business life insurance and estate planning strategies for small business owners. It discusses the importance of succession planning, as 70% of small businesses have no plan and fewer than 30% are passed successfully to the next generation. It also outlines potential risks businesses face and how life insurance can help by protecting assets, reducing uncertainty, and providing financial security. Several insurance products and strategies are described that can help with business continuation, employee retention, and estate planning goals. These include key person life insurance, buy-sell agreements, and various bonus and deferred compensation plans. The document stresses the importance of having professionals like accountants and attorneys on your planning team and working with a life insurance representative to determine the right policies and coverage
OneAmerica is an insurance company that offers participating whole life insurance policies. Dividends are a benefit of these policies that can increase cash value and death benefits without additional premium payments. Dividends are determined each year based on factors like mortality rates, expenses, and investment returns being lower than projected. Policyholders can choose to use dividends to purchase additional insurance coverage, receive cash payments, or reduce premiums. Hypothetical examples show how dividends can substantially increase long-term cash values and death benefit amounts compared to a non-dividend policy. OneAmerica has historically paid dividends even during financial crises, demonstrating their long-term commitment to policyholders.
The document discusses various options for owning life insurance in an estate plan, including both personal ownership and ownership through an irrevocable life insurance trust. It notes that the standard recommendation is for a trust to own life insurance to avoid estate taxes, but that personal ownership may also make sense depending on an individual's circumstances. The document explores issues to consider regarding how life insurance fits into an estate plan based on an individual's needs, goals, and tax situation.
The document discusses an estate planning attorney who attended a meeting with a financial planner and client. The financial planner unveiled an innovative wealth replacement strategy using permanent life insurance. This intrigued the attorney, as it could help clients recover from stock market losses and ensure retirement income. The strategy guarantees a death benefit, allows spending principal, and increases retirement income and flexibility. The attorney adopted the strategy and it eased his fears about having enough money in retirement.
This document discusses the benefits of Prudential's LTC3SM Guaranteed Purchase Option (GPO) for long-term care insurance. It notes that purchasing a policy with GPO at ages 40 and 50 provides better benefits and lower premiums compared to purchasing at age 62. It provides an example showing how premiums and benefits would increase over time for a policy purchased at age 40 with GPO compared to purchasing at age 61. The document aims to help financial professionals explain to clients how GPO can protect their retirement plans by making long-term care insurance more affordable and comprehensive when purchased earlier.
This document discusses how life insurance can help with comprehensive financial planning by protecting against risks like death, accidents, sickness, and providing retirement income. It notes that people spend more time planning vacations than financial risks. Life insurance offers investment options, helps with retirement through annuities, and provides tax benefits. It can also help with estate planning through policies that pass funds to beneficiaries. Overall, life insurance is positioned as an important tool for holistic financial planning and protection from life's uncertainties.
This document discusses myths and realities surrounding annuities. It aims to dispel common misconceptions about annuities by providing factual information. Some myths addressed include that annuities are prohibitively expensive, their gains are taxed at higher rates than other investments, tax deferral is lost if an annuity is owned by a trust, and they are treated the same as other assets when inherited. The document explains that variable annuities can offer valuable benefits that justify their costs, their effective tax rates are often lower than assumed, tax deferral may be retained if the trust beneficiary is a person, and beneficiaries have tax deductions to alleviate double taxation upon inheritance.
As adverse market conditions force more investors into seeking alternatives that will provide more stability and certainty to their retirement portfolios, annuities have, once again, moved to the forefront of the investment landscape. Annuity sales topped $200 billion for the first time in 2011, and are expected to grow by double digit rates as tens of millions of Baby Boomers approach retirement. But, annuities, one of the oldest and most reliable financial instruments dating back centuries, are not without their controversy.
Insurance Planning is a very vital component of Financial Planning. This presentation is all about various types of Life and General Insurance available in India. It also talks about the benefit of Term Insurance Policy. One should only go for Term Insurance Policy as it is best cover for Protection. This presentation also talks about the Mis-selling happening in India when it comes to insurance selling.
Credit Union Fee Income Through Wealth Management Webinar Handouts | Money Co...NAFCU Services Corporation
This document discusses wealth management services that a credit union could offer to its members. It begins by asking what members' needs and fears are currently. Then it outlines demographic groups among members and the high, medium, and low needs they may have. The rest of the document discusses what wealth management entails, how a credit union can develop wealth management as an integrated platform, marketing and educational support available, sample seminar topics, compliance considerations, and technology solutions. It provides examples of three families' financial situations and returns under different wealth management strategies. The overall message is that wealth management can be a valuable service for credit unions to offer members.
The document discusses strategies for tax diversifying retirement income. It notes that retirement can last longer now while key income sources have been reduced. It recommends placing retirement savings in a variety of tax-advantaged vehicles like Roth IRAs, municipal bonds, cash value life insurance, and traditional IRAs to reduce taxes during accumulation and withdrawal. Cash value life insurance in particular allows tax-free access to policy values before or during retirement.
This document discusses sharing expertise with others to optimize resources and improve lives, which may require leaving one's comfort zone. It notes that expertise could be shared in unexpected ways or with unexpected people. Finally, it suggests that LinkedIn could be used to collectively benefit and better others through Der[pon Consul]ting International.
While most people think of permanent life insurance as a way to protect the financial security of their families, it can also serve as a powerful retirement tool.
Financial Freedom -- Life Insurance As An Asset Classguardiancds21
Whole life insurance is experiencing renewed interest as an investment during difficult economic times. It provides a death benefit as well as a guaranteed cash value that policyholders can borrow against tax-free. This "living benefit" offers a source of funds when other investments are performing poorly or access to cash is problematic. While more expensive than term life initially, whole life is seen as a conservative investment that is not tied to stock market performance and guarantees growth of cash value that can supplement retirement or be used in emergencies. It is being used increasingly for estate planning, business purposes like funding buy-sell agreements, and diversifying investment portfolios during periods of market volatility.
The 2010 annual report for Northwestern Mutual summarizes the company's strong financial performance in 2010. Some key points include:
- Total surplus grew $3.4 billion to $17.6 billion and policyowner dividends approved for 2011 were nearly $4.9 billion.
- Total revenue was $23.1 billion and total assets were $180 billion, increases of 8% and 8% respectively from 2009.
- Northwestern Mutual maintained the best possible financial strength ratings from the four major rating agencies.
The report highlights how the company continued to deliver superior financial value to policyholders while keeping a strong focus on helping customers plan for long-term financial security even during a time of economic uncertainty.
The document discusses the benefits of fixed annuities for retirement planning. It notes that retirees face significant financial challenges, including rising healthcare and living costs. Fixed annuities offer guaranteed returns, provide a stream of income for life, and allow for tax-deferred growth. Immediate annuities provide guaranteed lifetime income, while deferred annuities allow for long-term accumulation of assets on a tax-deferred basis before receiving income.
This document is the 2009 annual report for Northwestern Mutual. It summarizes the company's financial results for 2009, highlighting that despite volatility in financial markets, Northwestern Mutual paid over $4.7 billion in policyholder dividends, an increase of 4% from 2008. The report also features interviews with several policyholders who felt financially secure during the economic downturn thanks to their policies and relationships with Northwestern Mutual financial representatives.
Whole life insurance provides long-term value to policy owners in three ways:
1) It guarantees a level death benefit, level annual premium payments, and increases in cash value.
2) It provides permanent life insurance protection as long as premiums are paid.
3) The cash value builds over time and is not affected by market conditions, providing lifetime coverage with guaranteed level premiums.
This document provides an overview of business life insurance and estate planning strategies for small business owners. It discusses the importance of succession planning, as 70% of small businesses have no plan and fewer than 30% are passed successfully to the next generation. It also outlines potential risks businesses face and how life insurance can help by protecting assets, reducing uncertainty, and providing financial security. Several insurance products and strategies are described that can help with business continuation, employee retention, and estate planning goals. These include key person life insurance, buy-sell agreements, and various bonus and deferred compensation plans. The document stresses the importance of having professionals like accountants and attorneys on your planning team and working with a life insurance representative to determine the right policies and coverage
OneAmerica is an insurance company that offers participating whole life insurance policies. Dividends are a benefit of these policies that can increase cash value and death benefits without additional premium payments. Dividends are determined each year based on factors like mortality rates, expenses, and investment returns being lower than projected. Policyholders can choose to use dividends to purchase additional insurance coverage, receive cash payments, or reduce premiums. Hypothetical examples show how dividends can substantially increase long-term cash values and death benefit amounts compared to a non-dividend policy. OneAmerica has historically paid dividends even during financial crises, demonstrating their long-term commitment to policyholders.
The document discusses various options for owning life insurance in an estate plan, including both personal ownership and ownership through an irrevocable life insurance trust. It notes that the standard recommendation is for a trust to own life insurance to avoid estate taxes, but that personal ownership may also make sense depending on an individual's circumstances. The document explores issues to consider regarding how life insurance fits into an estate plan based on an individual's needs, goals, and tax situation.
The document discusses an estate planning attorney who attended a meeting with a financial planner and client. The financial planner unveiled an innovative wealth replacement strategy using permanent life insurance. This intrigued the attorney, as it could help clients recover from stock market losses and ensure retirement income. The strategy guarantees a death benefit, allows spending principal, and increases retirement income and flexibility. The attorney adopted the strategy and it eased his fears about having enough money in retirement.
This document discusses the benefits of Prudential's LTC3SM Guaranteed Purchase Option (GPO) for long-term care insurance. It notes that purchasing a policy with GPO at ages 40 and 50 provides better benefits and lower premiums compared to purchasing at age 62. It provides an example showing how premiums and benefits would increase over time for a policy purchased at age 40 with GPO compared to purchasing at age 61. The document aims to help financial professionals explain to clients how GPO can protect their retirement plans by making long-term care insurance more affordable and comprehensive when purchased earlier.
This document discusses how life insurance can help with comprehensive financial planning by protecting against risks like death, accidents, sickness, and providing retirement income. It notes that people spend more time planning vacations than financial risks. Life insurance offers investment options, helps with retirement through annuities, and provides tax benefits. It can also help with estate planning through policies that pass funds to beneficiaries. Overall, life insurance is positioned as an important tool for holistic financial planning and protection from life's uncertainties.
This document discusses myths and realities surrounding annuities. It aims to dispel common misconceptions about annuities by providing factual information. Some myths addressed include that annuities are prohibitively expensive, their gains are taxed at higher rates than other investments, tax deferral is lost if an annuity is owned by a trust, and they are treated the same as other assets when inherited. The document explains that variable annuities can offer valuable benefits that justify their costs, their effective tax rates are often lower than assumed, tax deferral may be retained if the trust beneficiary is a person, and beneficiaries have tax deductions to alleviate double taxation upon inheritance.
As adverse market conditions force more investors into seeking alternatives that will provide more stability and certainty to their retirement portfolios, annuities have, once again, moved to the forefront of the investment landscape. Annuity sales topped $200 billion for the first time in 2011, and are expected to grow by double digit rates as tens of millions of Baby Boomers approach retirement. But, annuities, one of the oldest and most reliable financial instruments dating back centuries, are not without their controversy.
Insurance Planning is a very vital component of Financial Planning. This presentation is all about various types of Life and General Insurance available in India. It also talks about the benefit of Term Insurance Policy. One should only go for Term Insurance Policy as it is best cover for Protection. This presentation also talks about the Mis-selling happening in India when it comes to insurance selling.
Credit Union Fee Income Through Wealth Management Webinar Handouts | Money Co...NAFCU Services Corporation
This document discusses wealth management services that a credit union could offer to its members. It begins by asking what members' needs and fears are currently. Then it outlines demographic groups among members and the high, medium, and low needs they may have. The rest of the document discusses what wealth management entails, how a credit union can develop wealth management as an integrated platform, marketing and educational support available, sample seminar topics, compliance considerations, and technology solutions. It provides examples of three families' financial situations and returns under different wealth management strategies. The overall message is that wealth management can be a valuable service for credit unions to offer members.
The document discusses strategies for tax diversifying retirement income. It notes that retirement can last longer now while key income sources have been reduced. It recommends placing retirement savings in a variety of tax-advantaged vehicles like Roth IRAs, municipal bonds, cash value life insurance, and traditional IRAs to reduce taxes during accumulation and withdrawal. Cash value life insurance in particular allows tax-free access to policy values before or during retirement.
This document discusses sharing expertise with others to optimize resources and improve lives, which may require leaving one's comfort zone. It notes that expertise could be shared in unexpected ways or with unexpected people. Finally, it suggests that LinkedIn could be used to collectively benefit and better others through Der[pon Consul]ting International.
While most people think of permanent life insurance as a way to protect the financial security of their families, it can also serve as a powerful retirement tool.
Financial Freedom -- Life Insurance As An Asset Classguardiancds21
Whole life insurance is experiencing renewed interest as an investment during difficult economic times. It provides a death benefit as well as a guaranteed cash value that policyholders can borrow against tax-free. This "living benefit" offers a source of funds when other investments are performing poorly or access to cash is problematic. While more expensive than term life initially, whole life is seen as a conservative investment that is not tied to stock market performance and guarantees growth of cash value that can supplement retirement or be used in emergencies. It is being used increasingly for estate planning, business purposes like funding buy-sell agreements, and diversifying investment portfolios during periods of market volatility.
Retirement Planning With Cash Value Life Insurance FinalMark L. Simon
The document discusses challenges facing retirement savings and proposes supplementing savings with cash value life insurance. It notes that longer lifespans, inflation, and uncertain social security and pensions require greater personal savings. Cash value life insurance allows tax-deferred growth, tax-free retirement income and death benefits to help cover these needs. A case study shows how $10,000 annual premiums over 20 years can provide over $500,000 of benefits.
32 Ways a Digital Marketing Consultant Can Help Grow Your BusinessBarry Feldman
How can a digital marketing consultant help your business? In this resource we'll count the ways. 24 additional marketing resources are bundled for free.
Permanent Life Ins Slirp - Supplemental Life Insurance Retirement Plannlinajarvela
This document discusses how permanent life insurance can be used as a retirement planning tool through a strategy called Supplemental Life Insurance for Retirement Planning (SLIRP). SLIRP uses the cash value in a permanent life insurance policy to supplement retirement income through tax-free withdrawals and policy loans. It provides death benefit protection for beneficiaries and a way to access funds for retirement without paying taxes on withdrawals up to the policy owner's cost basis. While not guaranteed, permanent life insurance cash values have the potential to grow tax-deferred and be a source of retirement income. The strategy relies on dividends and interest rates, which are subject to change by the insurer.
This document provides information about retirement planning and risks to consider when planning for retirement. It discusses the importance of having a retirement plan that incorporates predictable income, access to assets for flexibility, and growth opportunities. This allows the plan to address risks like longevity risk, inflation risk, health care costs, market risks, and excessive withdrawals. The document recommends a retirement strategy with three components: a predictable income stream, access to liquid assets, and growth potential. This can help retirees feel confident in their ability to cover living expenses and maintain their standard of living. Key considerations for the strategy include when income will be needed and how much, which depend on the individual's retirement horizon, needs, and risk tolerance.
The document provides an overview of the Integrity with GFD solution, a new wealth accumulation and protection solution for business owners. It addresses main challenges business owners face like not having enough money for retirement or rewarding family. The Integrity solution offers accelerated wealth accumulation, additional life insurance protection, and significant tax advantages. It works by providing an upfront loan that is deposited into a universal life insurance policy to grow tax-deferred. Business owners can then enjoy multiple exit strategies like selling the business, using it for retirement income, or leaving a financial legacy.
This document provides an overview of how a life insurance retirement plan can help address three key financial challenges facing families: financial vulnerability if the primary income earner dies, outliving retirement assets, and reducing taxes. It explains that a life insurance policy can provide a tax-free death benefit to beneficiaries and tax-deferred cash value that can supplement retirement income. The document outlines factors to consider like death benefit needs, cash value accumulation goals, and premium affordability. It aims to help clients understand if a life insurance retirement plan fits their needs and objectives.
The document discusses annuities and provides information about whether an annuity is right for retirement planning. It asks questions to consider like whether you are concerned about outliving your income or maintaining your lifestyle in retirement. It also discusses accumulating funds in deferred annuities to help minimize gaps in retirement income. Annuities offer guaranteed lifetime income options to complement other retirement income sources. The document summarizes types of annuities and their tax benefits, as well as features like income options and death benefits that make annuities a valuable part of a diversified retirement portfolio.
ClaimLinx specializes in consulting and benefit administration for self-funded medical plans. Their Simple Option Solution program allows employers to raise deductibles on their health plans and implement a Section 105 medical reimbursement plan to "buy back" benefits for less. This can save employers 10-80% on health costs. The implementation process involves presenting employers with customized savings projections and transitioning their plan administration to ClaimLinx as the third-party administrator. ClaimLinx handles ongoing services like claims processing and reporting to help employers lower costs while maintaining coverage for employees.
Funding a 30-year retirement will take financial planning prowess as you
juggle the effects of inflation, distributions, taxes, asset allocation, and
expenditures. Are you up to the task?
This document discusses key considerations for planning a 30-year retirement. It notes that factors like inflation, taxes, health costs, longevity, and asset allocation must all be accounted for. Retirees may need income for 50 years or more, and inflation could significantly erode purchasing power over such a long period. The document recommends developing cash flow models with a financial advisor to identify gaps, setting a sustainable 4% annual withdrawal rate, and maintaining a contingency fund to address unexpected needs. Diversifying investments and regularly transferring funds are also suggested to balance risks.
The document discusses changes to UK pension rules that revolutionize how pension benefits can be taken in retirement. Key points include: the abolition of the age 75 rule; allowing income drawdown indefinitely; introducing flexible drawdown; changing current drawdown to capped drawdown; changes to death benefits and tax charges; transitional rules for those already in drawdown; keeping the ability to take 25% tax-free cash; and keeping annuities as an option but allowing their purchase at any age after 55. It also notes that drawdown is complex and risky compared to annuities which provide secure lifetime income.
Whole life insurance can serve as a versatile financial asset that provides long-term value to policy owners in several ways:
1) It provides permanent life insurance protection through a guaranteed level death benefit and premium as long as premiums are paid.
2) The cash value grows tax-deferred and can be accessed on a tax-advantaged basis through policy loans or partial surrenders.
3) Dividends can be used to purchase additional paid-up insurance, increasing both the death benefit and cash value over time.
4) The death benefit is received income tax-free, while cash values, dividends, and distributions are generally not taxed until costs are recovered.
5
Whole life insurance can serve as a versatile financial asset that provides long-term value to policy owners in several ways:
1) It provides permanent life insurance protection through a guaranteed level death benefit and premium as long as premiums are paid.
2) The cash value grows tax-deferred and can be accessed on a tax-advantaged basis through policy loans or partial surrenders.
3) Dividends can be used to purchase additional paid-up insurance, increasing both the death benefit and cash value over time.
4) The death benefit is received income tax-free, while cash values, dividends, and distributions are generally not taxed until gains are distributed.
5
Whole life insurance provides long-term value to policy owners in three ways:
1) It guarantees a level death benefit, level annual premium payments, and increases in cash value.
2) It provides permanent life insurance protection as long as premiums are paid.
3) The cash value builds over time and is not affected by market conditions, providing lifetime coverage with guaranteed level premiums.
We will begin by discussing your goals, financial situation, risk tolerance, and timeline to create a customized plan. Our goal is to ask questions to help you evaluate your options and find the best solutions. We will regularly review your plan and finances, making adjustments if needed to ensure your assets still meet your needs. Your plan will be tailored specifically to you.
Funding a 30-year retirement will take financial planning prowess as you
juggle the effects of inflation, distributions, taxes, asset allocation, and expenditures. Are you up to the task?
Funding a 30-year retirement will take financial planning prowess as you
juggle the effects of inflation, distributions, taxes, asset allocation, and
expenditures. Are you up to the task?
1. Permanent life insurance can be a good investment if commissions are reduced by 85% and the policy is obtained from a company with low mortality charges. This can improve rates of return by over 200 basis points compared to a standard policy.
2. Reducing commissions, which typically exceed 100% of the first year premium, allows more of the premium to build cash value immediately rather than pay commissions. Low commissions improve long term returns significantly.
3. Obtaining a policy from a company with the best mortality results based on industry studies can further improve returns by 90-140 basis points depending on age. Combining low commissions and low mortality charges offers the best returns.
This document summarizes the triple threat of disability for business owners: keeping a roof over your head through individual disability income insurance, keeping your business's door open through overhead expense insurance, and keeping your business investment intact through disability buy-out insurance. It outlines the risks business owners face if they become disabled and cannot work, and how different insurance products can help address each threat by providing income replacement, paying business expenses, and funding the buyout of a disabled owner's share. The document encourages contacting the representatives for more information on assessment, design options, costs, and implementation.
The document summarizes key features of the London Life lifetime income benefit option, which helps manage risks in retirement. Some key points:
1) It provides guaranteed, predictable income for life starting as early as age 50, regardless of how long the person lives or how markets perform. Income amounts are based on age and increase over time.
2) It offers potential increases to income through annual 5% deferral bonuses for delaying withdrawals, allowing the income base to grow even in down markets.
3) Income amounts can be "reset" every 3 years to higher levels if the policy value has increased, securing gains and providing opportunity for growth in retirement income. Resets are available for life of the policy
The document summarizes the key features of the London Life lifetime income benefit option, which provides guaranteed lifetime income in retirement. It offers:
1) Predictable, guaranteed income for life starting as early as age 50 that is not dependent on market performance or how long the person lives.
2) Potential for increasing income through a 5% annual deferral bonus on income not taken and periodic income resets as the policy value increases over time.
3) Protection against longevity, market, and inflation risks by transitioning savings into guaranteed lifetime income regardless of fund performance or market drops.
Smart Money magazine is a fully personalised and branded consumer-driven personal financial planning client publication. Sent to key clients, professional intermediaries and prospects, every issue will enable your business to improve client communication, raise brand awareness, develop greater marketing efficiency, enhance client retention and increase sales - all of which are becoming increasingly important, particularly in the light of Treating Customers Fairly (TCF) and the Retail Distribution Review (RDR).
Goldmine Media has been publishing Smart Money magazine for over a decade and every issue features timely and accurate editorial combined with intelligent design. Whether you are a financial adviser, wealth manager, accountant or solicitor, every issue will provide you with the perfect marketing solution to engage more effectively with your business audiences.
The front cover of Smart Money magazine features your business logo and company name printed in your corporate colours and also includes your contact details and regulatory statement. At no additional cost you can change the title name to make every issue even more bespoke and relevant to your business.
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2. preparing for
the ifs in life.
diversify.
These reasons are why a cornerstone of many
Life insurance is for living.
successful families’ financial plans is life insurance.
Wouldn’t you live better It is a flexible product that offers death benefit
now if you had more confidence protection and may also offer an opportunity to
save for your own future. Evaluating all available
in your ability to: financial opportunities may help you to reach
your financial goals. Life insurance is one of those
• Create financial protection opportunities – providing protection for today and
for your family helping prepare for tomorrow.
• Grow equity with which to
preserve your lifestyle Please note: This document is designed to provide introductory information
on the subject matter. MetLife does not provide tax and legal advice. You
• Leave a legacy to the ones should consult with your attorney and /or tax advisor before making financial
investment or planning decisions.
you love
3. life insurance-
an asset with Advantages
ASSET
A resource having economic value
that an individual, corporation or
country owns or controls with the
expectation that it will provide
future benefit.
Investopedia.com
Traditionally, life insurance has been thought of as a necessary expense A note about life
needed to protect a family’s financial future, but it has the potential insurance distributions:
to offer far more when you consider its advantages as an asset.
Tax-free distributions assume that the
Life insurance can: life insurance policy is properly funded,
is not a Modified Endowment Contract
• Leverage a limited number of premium payments into a sizable
(MEC), and distributions are made up to
death benefit to protect your family in the event you die
the cost basis and policy loans thereafter.
prematurely.
Distributions may need to be reduced,
• Provide access to cash value which could be utilized to supplement stopped and/ or premium payments may
retirement income or help fund a child’s education. need to be resumed if the policy does
• Transfer wealth created over a lifetime with an income tax free not perform as expected or to avoid a
death benefit. The life insurance death benefit even has the policy lapse. Should the policy lapse or
potential to be estate tax free if properly owned and structured. be surrendered prior to the death of the
insured, there may be tax consequences.
For these reasons, life insurance is more than just a necessary
expense — it is an important asset to own within your portfolio.
The benefits of a permanent life insurance
policy include:
• Income tax free death benefit paid to beneficiary
• Tax-deferred growth of policy cash values
1
Loans and withdrawals will decrease the cash value
• No contribution limits due to income and death benefit.
• Potential for income tax-free withdrawals and policy loans1 2
For a MEC policy, income taxes are due upon
withdrawal, and, if withdrawn before age 59½,
• No 10% penalty tax on cash value distributions prior to age 59½2 a 10% Federal income tax penalty tax may apply.
1
4. consider
income taxes when
funding your Portfolio
U.S. FEDERAL MARGINAL INCOME TAX RATES
Taxes can have a Average Top Marginal Tax
Rate = 59.45%
100
significant impact on how 90
Average income at which
top rate becomes effective
much of your savings you 80
$256,842 (1942-2009)
ultimately get to use to PERCENTAGE OF INCOME
70
enhance your lifestyle. 60
50
Taxes can also have an impact on how
40
much of any remaining assets are
received by your beneficiaries. In the last 30
thirty years, U.S. income taxes have been
20
comparatively low. The top Marginal
10
Tax Rate for the highest income earners
is currently 35%, but the average top 0
1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
rate over the last one hundred years has YEARS
Internal Revenue Service, Statistics of Income Bulletin
been nearly 60%.
Even though the future of income taxes is
unpredictable, it would be reasonable to
assume they will continue to evolve over
time, experiencing high and low periods.
You can help protect retirement assets from
being diminished by taxes by allocating
savings to assets that permit tax-free
distributions. This action has the potential
to enhance your retirement income because
your savings will be sheltered from income
tax, regardless of the rates in effect at the
time you need income.
2
5. 4 assets with
tax-advantages
Contributions to Roth IRAs are limited to those with
• Roth IRAs
income below certain levels and Roth 401(k)s have very
• Roth 401(k)s
limited availability, only 19% of plans in 2009 offered
• Municipal Bonds this option.3 For families who need life insurance’s death
• Cash Value Life Insurance benefit protection, cash value policies may provide the
ability to protect one’s family today as well as the
potential to supplement retirement income tomorrow.4
GENERAL OVERVIEW OF FEDERAL TAX FEATURES
Life Qualified Plan/ Deferred Roth IRA/ Municipal
Feature
Insurance Traditional IRA Annuities Roth 401K Bonds
Funding/Contribution Limits NO5 YES NO YES NO
Potential Income
YES YES YES YES TAX EXEMPT7
Tax-Deferred Accumulations
Income Tax-Advantaged
YES NO NO YES TAX EXEMPT7
Withdrawals/Loans
Income Tax-Free Insurance
YES6 N/A NO N/A N/A
Death Benefit
Penalty Tax for Early Withdrawal Only if MEC4 YES YES YES NO
Cost of Insurance Charges8 YES NO YES NO NO
The table above provides a general overview of certain Federal tax features of the listed asset options. These highlighted
features do not present a complete picture of applicable Federal tax rules. Federal tax law is highly specific and depends
on individual facts and circumstances. Please make sure to consult your personal tax and legal professionals in your
particular situation before purchasing any financial product.
3
Drinker Biddle & Reath LLP, Grant Thornton LLP and Plan Sponsor Advisors.Retirement Plan Survey, 2009.
4
Distributions from a life insurance policy are loans and withdrawals. Certain withdrawals may be subject to income tax in the first fifteen years
depending on criteria set forth in Internal Revenue Code 7702(f)(7)(B). After fifteen years, assuming the policy is not a Modified Endowment
Contract (MEC), withdrawals up to the policy’s tax basis are not taxable. Policy loans are not taxable provided that the policy remains in force until
the insured dies. Policy loans may have interest charges. Unfavorable performance of variable life insurance product subaccounts may necessitate
the payment of additional premium. Should the policy lapse or be surrendered prior to the death of the insured, there may be tax consequences.
Loans and withdrawals will decrease the cash value and death benefit.
5
Life insurance premiums are not limited above certain income guidelines. Generally, there is not a specific limit on dollars allocated to purchase life
insurance, however there are maximum premium limits determined by a specifed policy face amount according to the Internal Revenue Code. The
face amount of coverage each carrier will underwrite will also differ.
6
For Federal income tax purposes, life insurance death benefits generally pay income tax–free to beneficiaries. In certain situations, however, life
insurance death benefits may be partially or wholly taxable. Please consult your professional tax advisor for information regarding your particular
facts and circumstances.
7
AMT may apply.
8
Life insurance and annuities have cost of insurance charges associated with providing a death benefit that do not apply to other products. Each of
the financial vehicles listed above will have various fees and charges.
3
6. taking a
closer look at Cash Value
MEET JACK
Jack Martin is 35 and owns his own landscaping company. He If Jack does not need additional income during his retirement,
has recently divorced and needs to make sure his two children he can either continue paying premiums, allowing the cash
are provided for financially, should he suffer an untimely death. value and death benefit to increase, or he could allow future
He has decided to purchase life insurance to meet this need. dividend payments to reduce his premium outlay and keep the
death benefit relatively stable.
Jack has always reinvested almost all of his profits back into the
company and now he feels the need to catch up on preparing Jack really likes the flexibility of this life insurance product and
for retirement. He has a SIMPLE IRA in which he invests the moves forward with his application for the policy.
allowable maximum each year and feels comfortable he has
an additional $10,000 per year that he can devote to insurance
premiums and added savings.
Jack’s financial professional shows him an illustration for
a MetLife Whole Life policy. Assuming Jack qualifies for a MetLife Whole Life Policy Cash Value
preferred, non-smoker rating and pays $10,000 premium each
year until age 100, the guaranteed death benefit on the policy Assuming Current Dividend
Guaranteed Crediting Rates
would be $909,5069. The death benefit has the potential to AGE
Cash Value
increase with higher crediting rates or dividend payments that Cash Value Yield
are non-guaranteed features of the policy. 55 $214,643 $310,721 4.03%
65 $373,807 $644,438 4.56%
Jack’s financial professional explains that the cash value grows
75 $543,885 $1,153,122 4.62%
slowly in the early years of the policy, but can grow into a
85 $697,591 $1,879,646 4.52%
significant source of funds for supplemental income by the time
he retires. Then he shows Jack what the policy’s cash value may
mean to him at age 55, 65, 75 or 85 depending on his future
For Illustrative Purposes Only. Please request a full product illustration from
income needs. your financial representative for more details.
Based on the policy’s non-guaranteed dividends, Jack would Assumptions: 35 year old male, preferred, non-smoker, $10,000 premium paid
annually through age 100, Federal income tax rate = 35%
earn slightly more than a 4% rate of return on premiums paid if
he waits until retirement age to take any loans or withdrawals Current crediting rates and dividend scale are not guaranteed and are likely to
be changed by Metropolitan Life Insurance Company over time. Your policy’s
from the policy. However, If Jack initiated a moderate actual non-guaranteed values and benefits will be more or less favorable than
supplemental income stream from the cash value using those shown.
withdrawals and loans—being careful not to lapse the policy-
he may realize this income on a tax-free basis.10 A significantly 9
Guarantees are based on the claims paying ability and financial strength of the
issuing company.
higher rate of return would be necessary to distribute an 10
Tax-free distributions assume that the life insurance policy is properly structured,
equivalent amount of income from a taxable account, due to is not a Modified Endowment Contract (MEC) and distributions are made up
capital gains or ordinary income taxes. to the cost basis and policy loans thereafter. Should the policy lapse or be sur-
rendered prior to the death of the insured, there may be tax consequences. Loans
and withdrawals will decrease the cash value and death benefit.
4
7. life insurance as
a value added
asset in your Portfolio
While the policy’s death benefit is the primary reason for
purchasing life insurance, it is important to know that the
For more information
policy you choose may provide more value to your family about MetLife’s life
than just a death benefit.
insurance products,
Protecting income for your loved ones is valuable in please contact your
itself, but permanent life insurance can easily transition to
providing supplemental retirement income should you financial professional.
enjoy a long and healthy retirement.11 Finally, it can
transfer any remaining death benefit to your beneficiaries
in the form of an income tax free legacy.
The flexibility to help you protect, accumulate and
transfer wealth can make life insurance a significant value
within your portfolio. When attempting to prepare
financially for the future IFs in life, it is important to
include assets that can change and grow with you.
A diverse mix of products may better enable your
portfolio to adapt to future accumulation, protection and
transfer needs. Life insurance deserves to be considered
as an integral asset within your portfolio.
why life insurance? COMMON GOALS FOR BUYING LIFE INSURANCE
Many people who buy life insurance do so 100
because they know it can add value to their Older Families
PERCENTAGE STATED GOAL
80
Married Couples
financial portfolio as a means of supplementing
WAS IMPORTANT
Not Married
a number of different financial goals in 60
addition to providing death benefit protection.
40
20
0
Provide Financial Transfer Wealth/Pay Tax-Advantaged Pay off Debt/Cover
11
Not all products provide guaranteed cash value accumulation. Security for the family Estate Taxes Savings or Investment Final Expenses
Supplemental Income
Investments in variable life insurance are subject to market risk
including loss of principal. LIMRA, How and Why People Buy High Face Life, August 2008.
5