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Using Life Insurance for
Legacy Building
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Legacy building is a strategy using permanent life insurance to offer
death benefit protection along with an efficient way to pass along
assets to beneficiaries. Typically, the strategy starts with funds the
client already plans to pass along to family. These funds are transferred
to a life insurance policy, which may immediately increase the amount
in the form of the death benefit. Items covered below include:

  • Client profile
  • Helpful tips
  • Ideas
  • Sample cases

North American is here to support your sales efforts—please contact
us today at (800) 800-3656, extension 10411 or email salessupport@nacolah.com
to learn how to put this powerful strategy to work for you.


Product Strengths

Typically those with assets designated for heirs or possibly for a church,
charity,1 or to help pay educational costs for grandchildren. Here you'll
find common traits for clients seeking a legacy building strategy using
life insurance.

  • Those usually within the retirement ages of 55-75
  • Typically have children/grandchildren
  • Financially secure with their own retirement plan
  • Holding funds designated to leave to heirs or grandchildren
    • Those holding CDs, savings accounts, or money market
      accounts, especially accounts designated as "payable/
      transfer on death" or POD/TOD
  • Those with annuities coming out of surrender
  • Older people with underperforming life insurance policies
  • Those currently taking required minimum distributions (RMDs)
  • People looking for ways to find tax-advantaged solutions to
    transfer funds2

Product Strengths

  • Consider a death benefit guarantee product:3 The death
    benefit guarantee offers assurance that the benefit will be available.
  • Accelerated Death benefits: Available to help with living
    needs should conditions be met.
  • Look to maximize the death benefit that fits your clients'
    needs:
    Help your clients purchase the largest amount of death
    benefit for their needs that an asset transfer can provide.

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Case 1: Custom Guarantee®

This universal life insurance product offers a competitively priced guaranteed
death benefit.3 For many clients, the guaranteed death benefit provides assurance
that the death benefit will be available for heirs. Consider Susie, a 68-year old
female, who is classified as preferred non-tobacco. She has $75,000 designated
for her two children when she dies. With a one-time dump in of $75,000,
she gains a death benefit of $264,745, which is a significant jump in funds
for her children. That's a guaranteed internal rate of return (IRR) of 6.5%
for 20 years in this particular case! Consider the Custom Guarantee for
your next legacy building case.


Click Here to see the illustration


Case 2: Guarantee Builder IUL®

This indexed universal life (IUL) insurance product may be ideal for legacy
building scenarios as the policy offers a guaranteed death benefit3 and the
IUL design may generate significant cash value. Paul, age 70 is in good
health and is classified as standard non-tobacco. He has prepared well
for retirement and has set aside $100,000 in a certificate of deposit that
he plans to split up equally among his three children. While he is interested
in leaving this money to his kids, he also would like to retain access to
the money for those "what if" scenarios. With the dump in, he immediately
gains a death benefit of $207,134 guaranteed to age 100 and maintains
access to potential accumulated cash values.


Click Here to see the illustration


 

For help with legacy building case design, contact Sales Development today
at (800) 800-3656, ext. 10411 or email salessupport@nacolah.com.