{2.24 minutes to read} This month, January 2017, our newsletter is going to focus in on the often maligned product of whole life insurance. Throughout my 33 years, I have seen how people have tried to acquire life insurance, and the one product that has worked for my clients over the years has been whole life insurance. The reason for that is the tremendous guarantees.

I’m going to highlight for you a concept we call retirement supplement. We have a healthy 40-year-old male paying in $10,000 a year until age 65, when the policy is paid up and guaranteed.

Starting at age 66, the policyholder takes an income of $38,000 out of the policy each year for 15 years. The client who would have placed $250,000 into the contract, will have withdrawn, tax free, $570,000 ($38,000 times 15) — more than double the amount of money that was placed into the contract. (This is based upon a current dividend scale and is not guaranteed.) On top of that, even though he or she withdrew all that money and no more payments were made past age 65, there is still close to $200,000 of permanent life insurance at age 80.

This type of concept can be so helpful to so many people, supplementing their Social Security, and allowing them to strategically withdraw money out of the life insurance policies instead of their investment account in years the market doesn’t perform well.

These policies also can be great solutions for long term care. When the life insurance in these limited pay policies: such as the life paid up at 65, the 10-pay, or 20-pay contract, is paid up, the long term care policy or rider will be paid up as well. Why? Because it’s inside the life insurance.

To learn more about the advantages of whole life insurance, give us a call. We’d be happy to show you how these products can really provide some lasting value throughout your lifetime.

Registered Representative offering Securities through American Portfolios Financial Services, Inc. (APFS) Member FINRA/SIPC. Investment Advisory Services are offered through G&G Planning Concepts, Inc. which is not affiliated with APFS. Strategic Wealth Advisors Network and Gassman Financial Group are not affiliated with APFS.
Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.

Michael Fliegelman, CLU, ChFC, AEP, RFC
Founder / President, Strategic Wealth Advisors Network
(631) 262-9254
Connect with me On LinkedIn On Facebook
Follow me on On LinkedIn On Facebook On Twitter
Brokerage Director, MassMutual


Please note that the information being provided is strictly as a courtesy. Always confer with your CPA prior to attempting to take any tax deduction. Michael Fliegelman is not a CPA, nor should the contained be considered tax “advice”.

Leave a Reply

Your email address will not be published. Required fields are marked *