A man in Clearwater, FL, claimed to have grown a grapefruit that looked exactly like an orange – except that it was bigger and yellow. The attempt at comparison is understandable given other features characteristic of both.
What If Clients:
1) Don’t have access to a qualified retirement plan, or
2) Have maxed out on the qualified plan they have, or
3) Are looking for a non-qualified benefit plan for themselves, key employees or others.
Although qualified plans and universal life policies are fruits of a different color, they still look a lot alike when used to provide funds for retirement.
Compare And Consider:
| Standard Qualified Plan | Universal Life Insurance | |
| Unrestricted Contributions | No | Yes |
| Contributions Deductible | Yes | No |
| Tax-Deferred Growth Within | Yes | Yes |
| Nontaxable “Cost of Insurance” |
No (Must report economic benefit for coverage under the plan) |
Yes (COIs are paid internally with untaxed returns on the cash value) |
| Uninterrupted Accumulation After Age 70-1/2 | No | Yes |
| Non-Taxable Withdrawal of Funds | No | Yes (Non-MEC FIFO withdrawals and loans) |
| Early Withdrawals Free of Penalties | No |
Yes (Assuming a non-MEC contract outside the surrender charge period) |
Call today for a ledger illustrating an over-funded UL product that demonstrates an attractive withdrawal strategy during your client’s retirement years to supplement their retirement income from other sources.
Remember: The biggest asset your clients may have available for their retirement planning could be their insurability!