Case Study – The Johnson Family

What is one way a Life Insurance policy can provide flexibility to meet any challenge? Let’s take a look at this sample case study and see!

The Clients:

John Johnson, age 55 and Jill Johnson, age 54

Current Financial Need:

Reallocate assets to help provide sufficient retirement income and available funds for future and health care costs, while providing death benefit protection.

Long Term Financial Need:

Develop an estate plan that can reduce estate taxes.

The Solution:

John implements a Whole Life insurance policy on himself, and funds it by taking a 72t distribution from his IRA and making up the difference out of pocket.

By the time John retires, the death benefit will have grown substantially and the cash value of the whole life policy can be used to help provide sufficient income during retirement. In addition, the guaranteed death benefit of the whole life policy can pass income tax-free to the beneficiaries for estate planning purposes.

This shows the power and flexibility of a properly designed Whole Life policy which not only offers a death benefit, but offers living benefits such as retirement income, tax advantaged growth, a safe harbor for savings, and more.