Tools to help maximize client assets and minimize taxes
Whether your clients are in the accumulation, retirement or estate maximization phase of life, permanent, cash value life insurance can help them minimize taxes and maximize their assets.
Whether your clients are in the accumulation, retirement or estate maximization phase of life, permanent, cash value life insurance can help them minimize taxes and maximize their assets.
LIFT shows clients how permanent life insurance can help protect their family, provide supplemental retirement income and efficiently pass on their estate.
Our signature LIFT strategy uses life insurance cash value to supplement retirement distributions, which results in a lower effective tax rate in retirement. Our financial professional guide will show you how.
Additional consumer-focused materials and calculators will help clients take a tax efficient inventory of their assets, determine their retirement income gap and understand how the sequence of returns can impact their retirement assets.
Additional strategies to help lift the tax burden
With input from financial professionals like you, we’ve developed three additional sales strategies that can help clients:
The pre-funding retirement taxes strategy can help producers show clients how to use the cash value from a well-funded life insurance policy to pay the taxes on their retirement distributions later in life.
Ages: 35- 55
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Calculates the taxes that would be owed on a retirement distribution, then solves for the funding needed to have those dollars available.
The tax efficient legacy allows clients to spend down their retirement assets – and use life insurance death benefit to transfer wealth to the next generation.
Ages: 60+
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Demonstrates using qualified plan distributions to fund a life insurance policy to transfer the value of that asset to the next generation.
This strategy essentially lets your clients pre-pay the taxes on a qualified asset that will pass to their heirs.
Ages: 60+
(requires login)
Calculates the taxes that would be owed on a retirement asset at the expected age of mortality then solves for the premium needed to fund a policy well enough that the death benefit is equal to that tax.
Please keep in mind that the primary reason to purchase a life insurance product is the death benefit. Life insurance products contain fees, such as mortality and expense charges (which may increase over time), and may contain restrictions, such as surrender periods.
Policy loans and withdrawals may create an adverse tax result in the event of lapse or policy surrender and will reduce both the surrender value and death benefit. Withdrawals may be subject to taxation within the first fifteen years of the contract. Clients should consult their tax advisor when considering taking a policy loan or withdrawal.
This information may contain a general discussion of the relevant federal tax laws. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances.
For financial professional use only. Not for use with the public. This material may not be reproduced in any way where it would be accessible to the general public.
DOFU 6-2021
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