Blog #115: Part 2 of Leveraged Deferred Compensation
(Is Arthur Better Off With Term Insurance?)

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(Presentations in this blog were created using the InsMark Illustration System, Leveraged Compensation System and Cloud-Based Documents On A Disk.)

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Last week in Blog #114, we examined a Leveraged Deferred Compensation plan for Arthur Lee who is being recruited as Chief Executive Officer of Ryder Manufacturing Co., Inc. (“Ryder”), a successful, privately-owned C corporation.  This week in Blog #115, we’ll evaluate if term insurance could be a better alternative than the indexed universal life (“IUL”) featured in Blog #114.

Leveraged Deferred Compensation involves Arthur reducing his compensation by $250,000 a year for five years.  In his 45% marginal income tax bracket, this reduction costs him $137,500 a year for five years for a total of $687,500.  In return, Ryder loans Arthur $250,000 a year for five years ($1,250,000) which he uses to fund a personally-owned $5.7 million IUL policy illustrated at 6.85%.  The policy is collaterally assigned to Ryder as security for the loans.

Arthur is scheduled to begin participating policy loans in year 21.  The first loan is planned at $1,400,000, of which $1,250,000 will be used to repay the outstanding split dollar loans due Ryder; the remaining $150,000 provides cash flow for Arthur during his first retirement year.  In subsequent retirement years, gradually increasing loans are scheduled which level out at $377,000 at age 85.  By age 95, they total $8,723,541 in cumulative spendable cash flow for Arthur.  At that point, Arthur’s residual net cash value is $1,824,573 surrounded by a net death benefit of $2,076,566 for his heirs.

The plan is appealing to both Arthur and Ryder; however, one of Ryder’s financial advisers wants to see if “term and invest the difference” will perform better for Arthur if it is substituted for the Indexed Universal Life (“IUL”).

Below is a graphic of Arthur’s costs and benefits of the Leveraged Deferred Compensation plan:

Bob Ritter's Blog 115, a graphic of Arthur’s costs and benefits of the Leveraged Deferred Compensation plan image

Click here to review the year-by-year numbers.

Term Insurance as an Alternative

You never know when term insurance will surface, so my recommendation to you is that you always prepare a “permanent vs. term” comparison for each presentation.  You may not need it, but if you do, you’ll be glad you have it.

Think about this: you may want to present it whether term insurance is brought up or not.  Why bring it up if it is apparently not an issue?  Because it may surface from an adviser when you are not present, and having it previously presented allows your prospect(s) to be proactive about the alternative.  Instead of “I’ll look into it,” they can say, “Term insurance was already evaluated; the results do not favor it, and here are the calculations.”

The IUL in Blog #114 has a face amount of $5,700,000.  I am using only $4,450,000 of 20-year term insurance in the comparison since, due the split dollar arrangement of the Leveraged Compensation Plan, the net death benefit to Arthur’s family drops to $4,450,000 by year 5.  Thus, for the first four years, the IUL has more death benefit, a marginal advantage due to the short duration.

The best rate I could surface for $4,450,000 of 20-year term is $4,700 (male, age 45, preferred plus).  I used the same contribution level as the Leveraged Deferred Compensation ($137,500 for five years).  For the comparison, I used an equity account with a yield of 6.85% (same as the IUL) plus a 2.00% dividend for a total yield of 8.85%.

Of course, there is no legal way to “split dollar” term insurance and an equity account; however, even if you could, the dismal results of a “buy term and invest the difference” evaluation vs. Arthur’s personal costs and benefits of his Leveraged Deferred Compensation plan are significant.  Below is a graphic of the comparison from the InsMark Illustration System:

Bob Ritter's Blog 115 term insurance an equity account personal costs and benefits of leveraged deferred compensation image

Click here to review the entire term comparison report.

In his 45% marginal income tax bracket, the $250,000 compensation adjustment costs Arthur $137,500 a year for five years for a total of $687,500.  I used the same deposit pattern for the equity account and the term insurance.  Arthur is scheduled to begin participating policy loans from the IUL starting at the beginning of year 21, and I matched this after tax cash flow with the same after tax cash flow from the equity account.  Unfortunately, the equity account collapses in year 32 at age 76 as you can see on Page 3 of the report while the IUL is still performing at age 95 with $1,824,573 of residual cash value remaining surrounded by a net death benefit of $2,076,566 for his heirs.

In order to compete with Arthur’s share of the IUL, the equity account in this comparison would have to earn 11.18% plus the 2.00% dividend for a total yield of 13.18%, 633% basis points higher than the IUL.

Conclusion

I have made this comparison in my Blog using small, medium, and large cash value life insurance policies.  “Buy term and invest the difference” simply does not compete with 21st century cash value life insurance.  There is no economic theory that explains why a bad idea is acceptable just because you hear it frequently.  If you have the cash flow to buy what you want, cash value life insurance is the only logical choice.

I am reminded once again of Bill Boersma’s comment in his article in the December 2014 issue of Trusts & Estates in which he discusses life insurance as an asset class: “I can only wonder if another asset with the same qualities would be implemented more frequently if it wasn’t called life insurance.”

Suitability of Leveraged Deferred Compensation

  • For owner-executives of C corporations: Yes.
  • For non-owner executives of any business entity (C corporation, S corporation, Limited Liability Company, Partnership, and Limited Liability Partnership): Yes.
  • For executives of Tax Exempt Organizations: Yes.
    Note:  See Blog #40 for an example.
  • For an independent consultant to any business entity (C corporation, S corporation, Limited Liability Company, Partnership, Limited Liability Partnership, and Tax Exempt Organization): Yes.
  • For officers and directors of a publicly-owned corporation: No.

    Note:  This is due to the Sarbanes-Oxley Act of 2002 which precludes use of loan-funded plans for such individuals.
  • For managers and independent consultants of publicly-owned corporations: Yes.
  • For executives of governmental organizations: Yes

 

InsMark’s Digital Workbook Files

If you would like some help creating customized versions of the presentations in this Blog for your clients, watch the video below on how to download and use InsMark’s Digital Workbook Files.

New Zip File Downloaders
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Digital Workbook Files For This Blog

Blog115.zip

Download all workbook files for all blogs

Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.

Note:  If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System.  Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed.

 

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources as they have promised to take special care of my readers.  My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration!

Joint Interviews

If you want or need help from a qualified producer for joint interviews with any InsMark illustration and are willing to share the case, email us at bob@robert-b-ritter-jr.com, and we will provide you with recommendations.

Testimonials:

“InsMark’s Checkmate® Selling strategy of permanent vs. term is still one of the most compelling tools to bring a client to a definitive decision, based on their best case alternatives!!!  Solid mathematical comparisons that prove the validity of our insurance solution!!!”
Frank Dunaway, III, CLU, Legacy Advisory Services, Carthage, MO

“InsMark is the Picasso of the financial services world — their marketing savvy never fails to amaze me.”
Doug Peete, Past President, Top of the Table, InsMark Silver Power Producer®, Overland Park, KS

“The InsMark software is indispensable to my entire planning process because it enables me to show my clients that inaction has a price tag. I can’t afford to go without it!”
David McKnight, Author of The Power of Zero, InsMark Gold Power Producer®, Grafton, WI

 

Important Note #1:  The hypothetical life insurance illustrations associated with this Blog assumes the nonguaranteed values shown continue in all years.  This is not likely, and actual results may be more or less favorable.  Actual illustrations are not valid unless accompanied by a basic illustration from the issuing life insurance company.

Important Note #2:  Many of you are rightly concerned about the potential tax bomb in life insurance that can accidentally be triggered by a careless policyowner.  Click here to read Blog #51: Avoiding the Tax Bomb in Life Insurance.

Important Note #3:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

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More Recent Blogs:

Blog #114: Leveraged Deferred Compensation (Part 1)

Blog #113: Life Insurance Alternatives to a 401(k)

Blog #112: Retirement Planning Strategies Using Indexed Universal Life

Blog #111: Part 2 of the Impact of New Regulations on Indexed Universal Life

Blog #110: Impact of New Regulations on Indexed Universal Life (Part 1 of 2)

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive

 

Blog #114: Leveraged Deferred Compensation (Part 1)

(Click here for Blog Archive)
(Click here for Blog Index)

(Presentations in this blog were created using the InsMark Illustration System, Leveraged Compensation System and Cloud-Based Documents On A Disk.)

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Leveraged Deferred Compensation is used by highly compensated executives who want to reduce current taxable compensation (or forego scheduled increases) in exchange for tax free income in the future.  Not only is this plan extraordinarily efficient for an executive, the employer who utilizes it has a significantly lower charge to earnings than it otherwise would have if the compensation were not deferred.

Background

Designers of executive benefit plans for top earners are constantly in search of legitimate planning techniques that can defer the income tax on ordinary income.  One popular variation is called Deferred Compensation funded with corporate-owned life insurance in which an executive trades a portion of current compensation for the employer’s promise to make it up during retirement years when the executive will be — presumably — in a lower tax bracket.

There are three problems associated with this approach:

  • Limited vesting is allowed;
  • The employer may not be able to make good on its promise to pay;
  • Income tax is still due when the compensation is taken later.

All three problems can be solved if the deferred values are owned by the covered executive.  Normally, such ownership would trigger immediate taxation; however, InsMark’s Leveraged Deferred Compensation uses a technique in which the executive can own the plan’s values.  Three factors are involved:

  • The employer loans the executive the policy premiums using guidelines established in the final Split Dollar Regulations issued by the Treasury Department in 2003;
  • The policy benefits are collaterally assigned to the employer as security for the loans;
  • The executive (or his/her family) is entitled to the balance.

Plan Specifics

The owner of the policy is usually the insured executive who either reduces current compensation or declines a planned increase equal to the amount of the employer’s loans.

Interest on the loans is typically set to the Applicable Federal Rate established under IRC Section 7872 (also referred to throughout this Blog as the “AFR”).  Generally, the employer uses an unrelated compensation adjustment to assist with the cost of the loan interest.

So long as the loan interest rate paid by the executive equals or exceeds the Applicable Federal Rate, no further loan interest is imputed by the IRS on the transaction.  Generally, the loans are long-term loans (greater than 9 years), although mid-term loans (over 3 years but not over 9 years) or short-term loans (3 years or less) can be used.  Demand loans with annually changing interest rates can also be used; however, in most cases, term loans are preferred since interest rates can be tied down for longer periods of time.  With long-term loans, loan durations of 20 years or more can easily be accommodated.

Note:  Some commentators have made the recommendation that term loans be avoided.  In the case of below-market term loans, this is good advice — due to the Original Issue Discount (“OID”) rules of IRC Sections 1271-1275.  If, however, the loans are interest-bearing term loans with interest at or above the AFR, the OID rules do not apply — and the advantage of locking down favorable loan interest rates for long periods of time can be achieved without OID penalty.

The Plan’s Leverage for the Covered Executive

Through the voluntary compensation adjustment at the inception of the plan, the executive avoids income tax that would otherwise be due on the compensation.  So far, no income tax . . .

Assuming the plan is properly structured and designed, the executive-owned life insurance policy’s tax deferred cash values are not taxed as they accrue.  So far, no income tax . . .

Policy cash values can be accessed by the executive using policy loans which are not subject to income tax.  So far, no income tax . . .

At death, the policy proceeds payable to the executive’s beneficiaries avoid income tax.  So far, no income tax . . .

The Employer

If the employer is a profit-making organization, income tax is due on the compensation not paid to the executive.  In this case, if the employer then loans the executive an amount equal to the gross amount of compensation adjustment, it has an out-of-pocket cost equal to its income tax on that foregone compensation.

If the employer is a tax exempt entity, when the executive makes the compensation adjustment, the employer pays no taxes on the compensation not paid, and it can use all the resulting dollars for plan funding.

Case Study

Arthur Lee is being recruited as Chief Executive Officer of Ryder Manufacturing Co., Inc. (“Ryder”), a successful, privately-owned C corporation.  He has been offered a very generous five-year, no-cut, high six-figure compensation package which includes significant stock options.  He is interested in deferring $250,000 of his salary for five years, and he and the firm are considering Leveraged Deferred Compensation.

Classic Deferred Compensation funded with corporate-owned life insurance could be a possible alternative, but Arthur does not like: 1) the lack of minimal pre-retirement vesting and 2) the retirement benefit is taxed as ordinary income.  As you will see, InsMark’s Leveraged Deferred Compensation can provide a much better alternative.

With this plan, Arthur agrees to a $250,000 reduction in compensation in each of the next five years.  In return, Ryder loans Arthur $250,000 a year for five years ($1,250,000) which he uses to fund a personally-owned $5.7 million indexed universal life (“IUL”) policy illustrated at 6.85%.  The policy is collaterally assigned to Ryder as security for the loans.

Below is a graphic of the policy values:

blog-114-img-2-policy-values

Click here to review the details of the policy illustration.

Click here to review a Flow Chart of the Leveraged Deferred Compensation transaction.
Below is a graphic that illustrates Arthur’s costs and benefits:

blog-114-img-3-executives-cumulative-net-payments

In his 45% marginal income tax bracket, the $250,000 compensation adjustment costs Arthur $137,500 a year for five years for a total of $687,500.  Arthur is scheduled to begin participating policy loans in year 21.  The first loan is planned at $1,400,000, of which $1,250,000 will be used to repay the outstanding split dollar loans due Ryder; the remaining $150,000 provides cash flow for Arthur during his first retirement year.  In subsequent retirement years, gradually increasing loans are scheduled which level out at $377,000 at age 85.  By his age 95, they total $8,723,541 in cumulative spendable cash flow for Arthur from age 65 to 95.  At that point, Arthur’s residual net cash value is $1,824,573 surrounded by a net death benefit of $2,076,566 for his heirs.

Click here to review the full reports for this Case Study.  The key summary report is on illustration Pages 7 and 8.  Be sure to notice in Column (4) on Page 7 that there is a negative charge to earnings to Ryder in all years.  (A negative indicates a credit to earnings.)  I have outlined several columns in red throughout the report relating to the effect on Ryder’s earnings.  You also need to examine carefully the Employer’s Net Payment Analysis on Page 13 and the Executive’s Net Payment Analysis on Page 15 to understand fully the makeup of each party’s contribution to the plan.

Severance

The plan includes an optional severance benefit for Arthur on Pages 17 and 18 whereby Ryder repays Arthur’s $1,250,000 compensation reduction ($250,000 x 5 years) in the event his employment ceases for any reason prior to retirement.  In the event of his prior death, the severance will be paid to his named beneficiaries.  Notice on Page 17 of the full report that this optional feature reverses the negative charge to earnings in Column (5) creating the charge to earnings noted in Column (6).  Should Ryder wish to maintain a negative charge to earnings in all years including the severance, it could do so by reducing the severance benefit from $1,250,000 to $900,000 ($150,000 x 5 years).

An Alternative Analysis

A key question Arthur might ask is this:  “Would I be better off just taking the additional $250,000 compensation for five years, paying the income tax on it of $112,500, and investing the remaining $137,500?” Let’s see . . .

Each of our executive benefit plans can export the executive’s share of costs and benefits to InsMark Source Data Storage.  This is accomplished by using this prompt in the lower right corner of any of our executive benefit plans when in edit mode:

blog-114-img-4-InsMark-benefit-share-export-button

This routine stores that data in our Source Data storage files where it can be accessed by the InsMark Illustration System.  In Arthur’s case, I imported that data into Other Investments vs. Your Policy.

Let’s assume Arthur could invest the $137,500 annually for five years in an equity account earning the same 6.85% as the credited yield of the life insurance.  The indexes available for IUL generally don’t credit a dividend, so let’s include a 2.00% dividend and add that to the Equity Account growth rate for a total yield of 8.85%, 200 basis points greater than the IUL.  This will be compared to Arthur’s costs and benefits of his Leveraged Deferred Compensation arrangement.

Below is a graphic of the comparison:

blog-114-img-5-cumulative-payments-and-cumulative-after-tax-cash-flow-comparison

It’s not even close as the equity account collapses at Arthur’s age 77.  The IUL produces $6.2 million more in spendable retirement cash flow and contains over $1.8 million of residual cash value at age 95.

In order to match the IUL, the equity account would need a growth rate of 10.78% plus the 2.00% dividend for a total yield of 12.78% (593 basis points higher than the 6.85% of the IUL).

Click here to review the year-by-year details of the comparison.

Also of significant importance, the equity account has no life insurance death benefit associated with it.  If you factor in a premium for, say, 20-year level term insurance (you can do this in the Permanent vs. Term module in the InsMark Illustration System), the comparison looks even more dramatic.  I’ll illustrate this next week in Blog #115.

Note:  Leveraged Deferred Compensation works just as dramatically for a tax exempt organization.  (See Blog #40 for a Case Study involving a doctor employed by a tax exempt hospital.)

Conclusion

If you have clients in a position to attract high-end performers, Leveraged Deferred Compensation can be a showstopper.  Think of executives, of course, but also recruiting of professional athletes, college coaches, physicians and other professionals who have decided to join medical providers and, believe it or not, certain politicians like mayors and governors.

Other Illustrations in InsMark’s Leveraged Compensation System

The Leveraged Executive Bonus Plan uses loan-based split dollar to fund the income tax on the bonuses.

The Leveraged 401(k) Look-A-Like Plan uses a loan-based split dollar structure similar to the Leveraged Deferred Compensation discussed in this Blog.

Specimen Documents

Plans designed in our Leveraged Compensation Plan System require their own unique documentation, and specimen examples are included in Version 21.0 (or higher) in our cloud-based Documents On A Disk.  (See Key Employee Benefit Plans and Business Owner Benefit Plans.)

 

InsMark’s Digital Workbook Files

If you would like some help creating customized versions of the presentations in this Blog for your clients, watch the video below on how to download and use InsMark’s Digital Workbook Files.

New Zip File Downloaders
Watch the video.

Digital Workbook Files For This Blog

Blog114.zip

Download all workbook files for all blogs

Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.

Note:  If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System.  Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed.

 

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources as they have promised to take special care of my readers.  My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration!

Joint Interviews

If you want or need help from a qualified producer for joint interviews with any InsMark illustration and are willing to share the case, email us at bob@robert-b-ritter-jr.com, and we will provide you with recommendations.

Testimonials:

“The reason I use InsMark products is because they are so good at explaining financial concepts to all three parties: 1) the producer trying to explain the idea; 2) the computer technician trying to illustrate it; 3) the customer trying to understand it.”
Rich Linsday, CLU, AEP, ChFC, InsMark Power Producer®, Top of the Table, International Forum, Pasadena, CA

“Thanks to InsMark, we recently set business goals in our firm that I basically thought were ridiculously unachievable – until now.”
Brian Langford, InsMark Platinum Power Producer®, Plano, TX

“InsMark is an absolutely mind blowing experience.”
Larry Gustafson, InsMark Platinum Power Producer®, Denver, CO

 

Important Note #1:  The hypothetical life insurance illustrations associated with this Blog assumes the nonguaranteed values shown continue in all years.  This is not likely, and actual results may be more or less favorable.  Actual illustrations are not valid unless accompanied by a basic illustration from the issuing life insurance company.

Important Note #2:  Many of you are rightly concerned about the potential tax bomb in life insurance that can accidentally be triggered by a careless policyowner.  Click here to read Blog #51: Avoiding the Tax Bomb in Life Insurance.

Important Note #3:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

seperator bar

More Recent Blogs:

Blog #113: Life Insurance Alternatives to a 401(k)

Blog #112: Retirement Planning Strategies Using Indexed Universal Life

Blog #111: Part 2 of the Impact of New Regulations on Indexed Universal Life

Blog #110: Impact of New Regulations on Indexed Universal Life (Part 1 of 2)

Blog #109: The Key to Tax-Efficient Strategies in Retirement Planning

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive

 

Blog #113: Life Insurance Alternatives to a 401(k)

(Click here for Blog Archive)
(Click here for Blog Index)

(Presentations in this blog were created using the InsMark Illustration System and Wealthy and Wise®.)

Getting Started with InsMark Training Video

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Blog #113 is a continuation of my recent evaluations of Indexed Universal Life (“IUL”) vs. qualified plans in Blogs #110, #111, and #112.  Don Prehn and Steve Savant, both consultants to InsMark, have created a very interesting video that examines another aspect of this issue in two segments — each five minutes long.  Normally, I would present them in successive blogs, but the information flows better if viewed together.  Unfortunately, the video is a little jerky in places — perhaps due to a poor internet connection when I viewed it.  If it’s a flaw in the video, we’ll re-shoot it and re-insert it in this Blog, but for now, the message is important enough that I don’t want you to delay seeing it.

If you take advantage of the concepts discussed, you will never run out of prospects.  That’s a promise!

Click on the image below to begin the video.

blog-113-img-2-Don-Prehn-and-Steve-Savant-video-image

If you would like to review more details of the material presented in the video (including illustrations and graphics), please go to:

Blog #61 – Sacrificing Cash Flow with a 401(k) Plan

Blog #68 – A Pretend 401(k) Plan vs. Indexed Universal Life

Note:  IUL is illustrated at 7.50% in the video and both Blogs.

Revised Illustrations at 6.85%

Blogs #61 and #68 were released prior to the new regulations affecting the illustrated rate for IUL (just illustrations are affected; not actual policy performance).  These regulations have little noticeable effect on IUL presentations which will clearly disappoint certain mutual life insurance companies who lobbied extensively for them due to IUL’s challenge to whole life.

Click here to review a revision to the illustrations for Blog #61 (Joe Tanner, age 35) where a 6.85% interest assumption is used.

Click here to review a revision to the illustrations for Blog #68 (David Wolfe, age 45) where a 6.85% interest assumption is used.

Conclusion

IUL continues to provide superb tax-advantaged cash accumulation and retirement benefits.  In addition to dominating the tax deductible retirement plan (“TDRP”) described in the video and the two related Blogs, IUL has four additional advantages over the TDRP:

  • It provides a substantial life insurance death benefit;
  • If the selected market index drops, there is no loss to the policy owner;
  • There is no 10% penalty tax associated for distributions prior to age 59½;
  • There are no required minimum distributions.

“I can only wonder if another asset with the same qualities would be implemented more frequently if it wasn’t called life insurance.”
Bill Boersma

Note:  Along similar lines, Blog #106 compares IUL to a large profit sharing plan covering just the owner of a 30-person LLC (this would also apply to an LLP, an S corporation, or a C corporation).

 

InsMark’s Digital Workbook Files

If you would like some help creating customized versions of the presentations in this Blog for your clients, watch the video below on how to download and use InsMark’s Digital Workbook Files.

New Zip File Downloaders
Watch the video.

Digital Workbook Files For This Blog

Blog113.zip

Download all workbook files for all blogs

Experienced Zip File Downloaders Download the zip file, open it, and double click the Workbook file name to open it in your InsMark System.

Note:  If you are viewing this on a cell phone or tablet, the downloaded Workbook file won’t launch in your InsMark System.  Please forward the Workbook where you can launch it on your PC where your InsMark System(s) are installed.

 

InsMark’s Referral Resources
(Put our Illustration Experts to Work for Your Practice)

We created the Referral Resources listed below to deliver a “do-it-for-me” illustration service in a way that makes sense for your practice.  All are IMOs and InsMark Agency Platinum Power Producers®, and they are highly skilled at running InsMark software.  They will utilize your choice of insurance company, and they do not require a commission split.

Mention my name when you talk to our Referral Resources as they have promised to take special care of my readers.  My only request is this: if a Referral Resource helps you get the sale, place at least that case through them; otherwise, you will be taking unfair advantage of their generous offer to InsMark licensees.

Save time and get results with any InsMark illustration!

Testimonials:

“The reason I use InsMark products is because they are so good at explaining financial concepts to all three parties: 1) the producer trying to explain the idea; 2) the computer technician trying to illustrate it; 3) the customer trying to understand it.”
Rich Linsday, CLU, AEP, ChFC, InsMark Power Producer®, Top of the Table, International Forum, Pasadena, CA

“InsMark is the Picasso of the financial services world – their marketing savvy never fails to amaze me.”
Doug Peete, Past President, Top of the Table, InsMark Power Producer®, Overland Park, KS

“The InsMark software is indispensable to my entire planning process because it enables me to show my clients that inaction has a price tag.  I can’t afford to go without it!”
David McKnight, Author of The Power of Zero, InsMark Power Producer®, Grafton, WI

 

Important Note #1:  The hypothetical life insurance illustrations associated with this Blog assumes the nonguaranteed values shown continue in all years.  This is not likely, and actual results may be more or less favorable.  Actual illustrations are not valid unless accompanied by a basic illustration from the issuing life insurance company.

Important Note #2:  Many of you are rightly concerned about the potential tax bomb in life insurance that can accidentally be triggered by a careless policyowner.  Click here to read Blog #51: Avoiding the Tax Bomb in Life Insurance.

Important Note #3:  The information in this Blog is for educational purposes only.  In all cases, the approval of a client’s legal and tax advisers must be secured regarding the implementation or modification of any planning technique as well as the applicability and consequences of new cases, rulings, or legislation upon existing or impending plans.

seperator bar

More Recent Blogs:

Blog #112: Retirement Planning Strategies Using Indexed Universal Life

Blog #111: Part 2 of the Impact of New Regulations on Indexed Universal Life

Blog #110: Impact of New Regulations on Indexed Universal Life (Part 1 of 2)

Blog #109: The Key to Tax-Efficient Strategies in Retirement Planning

Blog #108: Profit Sharing Plan vs. Indexed Universal Life (Part 3 of 3)

 

3 Reasons Why It’s Profitable For You To Share These
Blog Posts With Your Business Associates and
Professional Study Groups (i.e. “LinkedIn”)

 

Robert B. Ritter, Jr. Blog Archive