Permanent life insurance can be for purely long-term protection purposes; think Guaranteed Universal Life or low-cost products with life expectancy guarantees. Other policies can, however, provide for personal, tax deferred savings in addition to the tax-free death benefit. Premium waiver and Chronic Illness/LTC benefits may also be available.
Consider a male, age 45, who had the foresight to purchase a $500,000 permanent cash value life insurance policy 10 years ago.
- Assuming a 10 Pay Whole Life Policy
- Year 10 Cash Value is roughly $133,000; death benefit is $533,000
- Age 65 Cash Value is roughly $342,000; death benefit is $713,000
How good would availability of that cash value look in today’s current environment? Obviously other plan designs are also available at a lower cost, however, bottom line is that this cash is not subject to a market downturn and is readily accessible, no questions asked.
Permanent cash value life insurance is the ideal Non-Correlated Asset for your clients to consider; the ideal time to plan for tomorrow is today.
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