Smart money is money your clients want to control and be able to access during times of need. While there are several options on where to keep this smart money, one that's often overlooked is permanent life insurance.
With the smart money concept using permanent life insurance, your clients gain three powerful benefits:
- Death benefit protection: The generally income tax-free proceeds could help a family continue, or the funds may be used to pass a legacy.1
- Cash value growth: Your clients have an opportunity to build cash value for financial needs down the road.
- Access to funds: Life insurance offers cash surrender value that is available for unexpected or immediate needs. Funds may be taken as loans or withdrawals for any reason.2 Plus, additional design elements may include the ability to accelerate the death benefit when diagnosed with a chronic or terminal illness.3
Be sure to conduct a thorough needs-based analysis and determine if death-benefit coverage is necessary before proceeding. Philip is a 55 year old male (Preferred Non-Tobacco) and is a successful sales person for a large farming equipment manufacturer. He's married and has three grown children. Philip has a Certificate of Deposit (CD)4 worth $50,000 that he likes to keep close at hand for emergency purposes. However, he wants financial protection for his wife, Katherine, and possibly to leave funds for his children. He's not thrilled with the current returns on his CD, but he likes knowing it is protected from large market volatility. He's interested in exploring another option. Using North American's Rapid Builder IUL� indexed universal life insurance, Philip gains $128,000 of death benefit protection he desires. Plus, he immediately leverages his premium payment of $50,000 into a larger benefit for his beneficiaries. Although Philip's primary concern is preserving access to as much cash value as possible, the Rapid Builder IUL also shows potential for cash value growth. Philip is reassured to see surrender values of over $49,000 for the first four years even on a guaranteed basis. At the same time, there's cash value growth even at the minimum 3% interest rate and a surrender value of nearly $65,000 after five years assuming a 7.5% interest rate. Philip also retains access to his funds through loans and withdrawals if needed.2 And with the product's available Waiver of Surrender Charge Option,5 it can waive surrender charges for anything except for an outgoing 1035 exchange. Lastly, Rapid Builder IUL offers downside protection, so the credited interest rate will never be less than zero percent, guaranteed. View The Sample Case For more information about using life insurance for your client's smart money, contact Sales Development today at (800) 800-3656 ext. 10411 or email at salessupport@nacolah.com. |