Always considered a “techie,” Lance had been working as an IT specialist for a large corporation for over 20 years. He had also started a side business as a computer consultant to small business owners. While Lance’s side gig paid well, though, he was worried that it would not be enough to support him and his family if he got laid off from his full-time job.
After voicing these concerns to his financial advisor, Lance was presented with a life insurance retirement plan, or LIRP. Suggesting that Lance fund the plan with $50,000 per year over the next 10 years, his total $500,000 premiums could provide Lance with a number of nice benefits, including:
- More than $200,000 per year in annual tax-free future income for 20 years, starting at age 70 (providing Lance with nearly $4.3 million in total distributions)
- Immediate coverage of more than $1.1 million, which grew to over $2 million by age 90, so his loved ones would remain financially secure, even in the event of the unexpected