Lock in tax-free retirement income in any income tax environment.
At age 30, Jack had already secured a nice nest-egg for the future. By contributing the maximum each year to his employer-sponsored 401(k) plan, he was on top of the world when his account balance reached an all-time high recently.
Unfortunately, most of Jack’s savings were in equities. So, when the COVID-19 pandemic wreaked havoc on the stock market, Jack’s investments lost more than 30% of their value in less than one month’s time!
His financial advisor recommended that Jack look into diverting some of his savings to a LIRP that offered both safety and long-term financial security. In his case, contributing $8,000 per year for 20 years, Jack could stop making premium payments at age 50, and still be able to access tax-free income of nearly $112,000 per year from age 60 to 90 (for a total of more than $2.9 million, even though his total contribution was just $160,000).
In addition, Jack could also lock in financial protection for his wife and two young daughters, with an initial death benefit of over $325,000 – which grew to just under $1.7 million over time.