Meet Chris and Nicole. They have been married for 21 years and have three children. They have been actively funding their 401(k) and saving for retirement. They are concerned about taxes and unplanned expenses taking a bite out of what they worked hard to save, and are looking for the best way to pass along their estate to their children.
Their life insurance solution
As Chris and Nicole evaluate the right life insurance to provide the protection they need plus the growth opportunity they want, here's how they decided a permanent policy with a death benefit and potential for cash value growth was a good fit:
Creates a legacy—our kids will receive the death benefit income tax-free, meaning that more of our hard-earned money will benefit them.
Charitable giving also matters to us so we wanted to do something for the local hospital. By taking the money we planned to donate and purchasing a life insurance policy with the hospital as the beneficiary, we’ll make a bigger impact with a larger, tax-advantaged gift.
With the tax-deferred earning potential of life insurance, we’re diversifying our retirement portfolio and giving ourselves options to access the cash value income tax-free, during our lifetimes, all while protecting our children’s financial future.
We know that one of us could have a health-related issue that generates expenses, like long-term care, and life insurance can be a financial resource to offset the expenses and prevent the illness from derailing our retirement or burdening our children.
Planning for your future like Chris and Nicole?
Talk with your financial professional about Permanent Life insurance. Permanent life insurance policies offer several unique benefits and optional riders that can be tailored to meet your goals.1 Learn more about life insurance as a flexible option in your financial portfolio.
Life insurance can be a powerful tool in reducing the effect of taxes on your retirement savings and your estate. It’s never too early or too late, and you’re never too young to take the steps necessary to organize your finances for life.
Minimize your tax exposure
Plan for a tax-efficient retirement using life insurance.
Life is what you make it
The right plan can provide living benefits that could allow you to access cash value during retirement.
What type is right for me?
The best option is the one that helps you meet your goals.