Smart money is money your clients want to control and be able to access during times of need. While there are several options for where to keep this smart money, one that’s often overlooked is permanent life insurance. It can provide the opportunity to build cash value for financial needs down the road, while also providing death benefit protection to help a family continue or to pass down a legacy.
The typically defined benefit pension plan may pose several challenges for your clients—mostly, a potentially lower monthly income during retirement, as well as a lack of flexibility to change the beneficiary or the election option. The pension maximization strategy can help your clients gain death benefit protection while making the most out of a pension plan.
Life expectancy is increasing. Health care costs are on the rise. Long Term Care costs are on the rise. Taxes are on the rise. The stock market has no guarantees. Longevity Planning is a strategy that helps your clients prepare for a long, healthy retirement, while also providing for loved ones in case of death. The desire to travel, a new home, new hobbies, and gifting assets are all desires that might be beyond your client’s current plan for income replacement in their later years. An unexpected illness might also make a long retirement more costly.
Legacy Building is a strategy that uses permanent life insurance to offer death benefit protection and efficiently pass on assets to beneficiaries. Typically, the strategy starts with funds the client already plans to pass along to the family. These funds are used to purchase a life insurance policy, which may immediately increase the amount in the form of the death benefit.