New Guidelines, New Possibilities

New Guidelines, New Possibilities

How to Secure Lifetime Income and Leave the Principal Behind

What if you could take an asset and provide increasing protected income for the rest of your life, while also making sure the principal is left to your kids? This option now exists. Clients can receive this increasing stream of lifetime income, to help offset the rising inflation risk, while also making sure a significant inheritance is left behind for their family. Depending on the options and configuration of the policy, the stream of income can be passed on to the surviving spouse, providing income for the rest of their life as well.

With a carefully considered “Income Legacy Plan” clients can now combine an Indexed Annuity with a Survivorship IUL policy to take joint life income, starting year one, and also secure a $1M death benefit for their heirs. The SIUL minimum premium would be paid for with after-tax annuity payments, providing both a stream of increasing protected joint-life income and the security of a substantial death benefit.

These policies with a $1M initial asset funding would provide roughly $30k income initially, after taxes and premium payments, and that income would continue to grow substantially over time. This would ensure an increasing stream of protected income that would surpass traditional policies and a $1M death benefit to leave behind.

Key Notes to Consider:

  • If the client didn’t need the total income, it could be funded into the SIUL (up to the new, higher 7702 limits). This would create more cash value for liquidity and potentially also more death benefit if the cash value hit the corridor.
  • Not only do the kids get the $1M income tax free death benefit but they also get either the indexed annuity account value in a lump sum or the income account value over 5 years. If both parents prematurely pass away their heirs will inherit much more than $1M.
  • In the analysis I compared to a Muni Bond account with a 2.5% yield.
  • This plan could work well for an annuity replacement, cash/bond accounts, qualified accounts, or even stock accounts with significant unrealized gains, where the loss of step up in basis may concern clients.
  • If the clients are less concerned about income, we can fund high IUL premiums and purchase more life insurance to increase the death benefit.
  • We could also use a survivorship product with a longer guarantee if that is a concern.

Download Your Sample Legacy Income Plan Here »

Contact LifePro Today!

If you’re interested in boosting your Indexed Annuity sales over the next month, reach out to your Field Support Representative today at 1-888-LIFEPRO and ask about our new Income Legacy Plan.

Sample Income Legacy Plan provided by InsMark, Inc. The information presented here is not specific to any individual's personal circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials.

About Brian Manderscheid

Brian Manderscheid is the Vice President of Case Design at LifePro. He works with financial professionals designing advanced case illustrations that are built for longevity and are always in the best interest of the client.


This information is meant for educational purposes only.

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