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Supplemental Retirement Income

 

 

 

 

Marketing Materials:

Agent Guide
Consumer Brochure
Agent Checklist
Client Worksheet
Case Flyer #1
Case Flyer #2

 

 

 

 
 

The supplemental retirement income strategy uses permanent life insurance to provide clients with death benefit protection while offering the potential to supplement their income during retirement. Topics covered below include:

  • Client profile

  • Helpful tips

  • Illustration software tips

  • Samples 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
 
 


Here are some characteristics of supplemental retirement income clients:

  • Ages 30-60

  • Need of life insurance protection

  • Middle to high income

  • Concerned about family's financial needs if death occurs during work years

  • Looking to supplement financial security in retirement years

  • Self employed, member of a partnership, or corporate employed

 
 
Product Strengths
 


There are several benefits to discuss with your clients, including:

  • Death benefit protection during both working years and retirement years.

  • Cash values inside of a life insurance policy grow tax deferred.1

  • No income contribution limits and generally tax free withdrawals and loans to the cost basis (assumes non-modified endowment contract status (MEC).2,3,4,5

 
 
Product Strengths
 
  • Avoid modified endowment contract (MEC)5 status.

  • Aim for a minimum non-MEC death benefit that meets your clients' needs for life insurance protection—lower death benefits may allow the policy to accumulate greater cash value.

  • When using the guideline premium test (GPT), if consistent with the client's needs, it may be beneficial to use the increasing death benefit option during the funding years, while changing the death benefit option to level during the income years. This may allow for greater cash value accumulation.

  • The policyowner has the option to choose between net zero cost6 loans and variable interest rate loans. For variable interest rate loans, consider running the illustration at several loan interest rates to understand how the rate impacts the illustrated performance.

 
 
 
 

Sample Case One: Builder IUL

Take a look at Builder IUL® to help your clients build long term cash value growth. This indexed universal life insurance product offers a guaranteed interest bonus on the index account along with several index selections to help build the potential for long term cash value accumulation.

View illustration

Sample Case Two: Rapid Builder IUL

Rapid Builder IUL® is designed to help build early cash values and offers a Waiver of Surrender Charge Option.7

View illustration

Sample Case Three: Survivorship GIUL

A second-to-die indexed universal life insurance product with an optional death benefit guarantee8 and a Waiver of Surrender Charge Option.7

View illustration

 

For help with your supplemental retirement income cases,
contact Sales Development today at (800) 800-3656, ext. 10411
or email at salessupport@nacolah.com.

 
 

1. The tax-deferred feature of universal life or indexed universal life insurance is not necessary for a tax-qualified plan. In such instances, your client should consider whether other features, such as the death benefit and optional riders make the policy appropriate for the client's needs. Before purchasing a policy, your client should obtain competent tax advice both as to the tax treatment of the policy and the suitability of the product.

2. Neither North American Company nor its agents give legal or tax advice. Please advise your customers to consult with and rely on a qualified legal or tax advisor before entering into or paying additional premiums with respect to such arrangements.

3. In some situations, loans and withdrawals may be subject to federal taxes. North American Company does not give legal or tax advice. Clients should be instructed to consult with and rely on their own tax advisor or attorney for advice on their specific situation.

4. Income and growth on accumulated cash values is generally taxable only upon withdrawal. Adverse tax consequences may result if withdrawals exceed premiums paid into the policy. Withdrawals or surrenders made during a Surrender Charge period will be subject to surrender charges and may reduce the ultimate death benefit and cash value. Surrender charges vary by product, issue age, sex, underwriting class, and policy year.

5. For most policies, withdrawals are free from federal income tax to the extent of the investment in the contract, and policy loans are also tax-free so long as the policy does not terminate before the death of the insured. However, if the policy is a Modified Endowment Contract (MEC), a withdrawal or policy loan may be taxable upon receipt. Further, unpaid loan interest on a MEC may be taxable. A MEC is a contract received in exchange for a MEC or for which premiums paid during a seven-year testing period exceed prescribed premium limits (7-pay premiums).

6. Zero Cost Loans are loans charged and credited at the same percentage for a net zero cost. The policy year and amount available vary by product.

7. Available for an additional charge per $1,000 per month, depending on issue age and underwriting class.

8. Subject to premium payment requirements.

Index universal life products are not an investment in the "market" or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.

The information presented in illustrations is hypothetical and not intended to project or predict investment results.

For full product information, please refer to the current Builder IUL series marketing guide (PR-1275) and the current Survivorship GIUL marketing guide (PR-1435).

Builder IUL is issued on policy form series LS172, Rapid Builder IUL is issued on policy form series LS169, and Survivorship GIUL is issued on policy form series LS171 without the Waiver of Surrender Charge Option and policy form series LS171W with the Waiver of Surrender Charge by North American Company for Life and Health Insurance, Administrative Office, Sioux Falls, SD 57193. Products, features, issue ages, endorsements or riders may not be available in all jurisdictions. Limitations or restrictions may apply.

FOR AGENT USE ONLY. NOT TO BE USED FOR CONSUMER SOLICITATION PURPOSES.
PR-1500 R2 1/12