Life insurance agents often sell whole life insurance policies by presenting the prospective buyer with an explanatory document that projects future values.  This document often goes by the name “illustration” because it seeks to illustrate the features and functionality of the product.  This document helps to explain not only the features of a specific product but ... Keep Reading

When Whole Life Insurance Fails to Deliver

The Insurance Pro Blog Podcast releases new episodes each week that support professional life insurance agents and financial planners who seek to better understand how cash value life insurance, in particular, might work for the benefit of their clients.

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Ready to retire richer? In this episode, we're back to build on last week's discussion about using tax-free income to beat inflation. We'll dive deep into cash value life insurance and other strategies that can help you achieve a financially secure retirement. We start by comparing a traditional retirement account growing at 8% annually with a $25,000 yearly contribution over 30 years. This brings the account balance to just over $3 million, providing a fully taxable income of $122,345 per year. But what if we took a different route? Next, we explore the option of saving the same amount in a brokerage account and purchasing a Single Premium Immediate Annuity (SPIA). Adjusting for taxes, this strategy yields an account balance of just over $2.5 million, with a SPIA providing more than $150,000 per year in income. The kicker? Only $58,776 of that income is taxable, thanks to the non-taxable portion of $91,224. Finally, we dive into the benefits of saving the same amount in a life insurance policy. An Indexed Universal Life (IUL) illustration shows a result of $142,488 per year in completely tax-free income. While this isn't as high as the SPIA, the tax-free nature of the income makes it a compelling option. Whether you're nearing retirement or have several years left to save, it's time to rethink your strategy. If you have other sources of saved money or time on your side, these tax-free or tax-reduced income strategies could significantly enhance your buying power. Tune in for a conversation that could transform your retirement planning and help you retire richer. Don't miss out! ________________________ If any of this sounds interesting to you, please click here to get in touch with us. 

Retire Richer with These Tax Free Income Strategies

Ever wonder how you can beat inflation with tax-free income? In this episode, your favorite hosts dive into the world of cash value life insurance and its powerful potential to generate tax-free income during retirement.  We break down how cash value life insurance can serve as a hedge against inflation, especially when compared to tax-qualified sources where you need to "gross up" your withdrawals just to net the same amount of money. This means you end up depleting your asset pool faster. Join us as we make the case for why cash value life insurance could be your secret weapon in the fight against inflation. We’ll walk you through the benefits, the mechanics, and how it stacks up against other retirement income sources.  __________________________  If you're interested in how a cash value life insurance policy (whole life or IUL) might work for you and your specific situation, please click right here and get in touch with us. 

How to Beat Inflation With Tax-Free Income

If you've bumped into the buzz that IULs are a bad bet, this episode is for you. We're going straight to the heart of the most common critiques. Rising costs? Let's talk about why that doesn't have to be the scare it's made out to be. The complexity of IULs? We'll break it down into plain speak. And those illustrated rates that seem too optimistic? We'll shed some light on what they really mean for your policy. We're here to have an honest conversation about what's been said about IULs and to give you the lowdown on how these policies actually work. Whether you're weighing your options for your financial future, or you're in the business and want to give your clients the full story, this episode is your chance to get a clearer picture. ______________________________ If you'd like the chance to see how an indexed universal life policy might work for you, please click right here to get in touch. We can help you figure out if it might be a good thing for you.

All the Arguments Against Indexed Universal Life Insurance Are Wrong

Are you considering using your whole life insurance policy as a source of retirement income? While ledgers and assumptions made by agents can be misleading, the process of distributing money from a whole life policy is not as complicated as it may seem. In this episode, we'll dive into the practical aspects of using your whole life policy for retirement and help you navigate the potential stumbling blocks. First, let's talk about the assumptions that agents often make when presenting ledgers. They may assume a constant income stream, a fixed loan rate, and a known dividend scale. However, in reality, these factors are likely to change over time. To ensure the sustainability of your retirement income, you must maintain a reasonable distribution rate. Typically, this is around 5% of the cash value when income begins. Beware of ledgers that show results exceeding this withdrawal rate, as they may be based on overly optimistic assumptions. The process of taking money from your whole life policy is relatively straightforward. You can make periodic requests or set up an automatic EFT distribution through your insurance company. In some cases, leaving the money in the policy until you need it and making periodic withdrawals can be more beneficial than taking a large lump sum at the beginning of the year. If you choose to take distributions through loans, you'll need to monitor your loan balance. Also, be aware that loan interest accumulates and is added to the policy at the end of each year. But what if you have an old whole life policy that wasn't purchased specifically for cash value? Can you still use it for retirement income? The answer is yes, but the withdrawal figures may differ, and you might need to work with an agent to determine the appropriate withdrawal rate. If you've lost touch with your original agent, be prepared to pay out of pocket for assistance from a new agent. In this episode, we'll guide you through the practical aspects of using your whole life policy for retirement, helping you make informed decisions and avoid common pitfalls. Tune in to learn more about how to unlock the potential of your whole life policy and secure your financial future.  ___________________________  If you'd like to explore what a whole life policy could do for you and potentially provide a source of retirement income, please click here to get in touch with us. We help people from all over the country do this every day. 

How Do You Actually Use Whole Life Insurance to Create Retirement Income?

What's old is new again. The U.S. Department of Labor has revived its "Fiduciary" Rule after 7 years. This rule was originally discussed and proposed in 2015-2016. However, it was tabled after Trump was elected, and the DOL dropped it. The new rule is no less confusing than the original. Perhaps even more so.   In today's episode we discuss some of the details as we understand them. More importantly, we opine about the absurdity of making rules to enforce ethical behavior. It just doesn't work and it never has.   ______________________  If you'd like for us to help you find the right cash value life insurance solution, or you're in a transitional period from your working years to retirement, please click here to contact us. We love helping listeners and even more when they become our clients.   

When Whole Life Insurance Fails to Deliver

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