At age 55, Jessica was settling into retirement. Although her husband recently passed away, Jessica received a large payout from his life insurance policy. So, between that and her Social Security, she was living comfortably and regularly spending time with her two young grandsons.
Even though the boys were still only age 3 and 5, Jessica wanted to make sure that they had all the money they needed for college, and that they also had some additional savings in place when they reached adulthood.
Her advisor suggested that Jessica fund a LIRP with $250,000 over a ten-year period. This would provide her and her family with a number of benefits, including:
- Initial death benefit coverage of over $4.3 million in Year 1 – which would still allow the boys to accomplish their financial goals, even if Jessica were no longer there
- Yearly tax-free income of more than $300,000 for Jessica when she reached age 65 – just ten years away – so her income could keep pace with her future living expenses