Common Alternatives to Life Insurance

Comparison of Alternatives

Your clients have worked a lifetime to create financial security for themselves and their family. They are comfortable and have assets that they may not need to fund their retirement. How can we best prepare them now to pass their wealth on to their loved ones? One of our non-conventional strategies that will help your clients succeed in their financial accomplishments is insured family legacy planning.

Taxable Investments

    • Brokerage Accounts
    • Private Equity
    • Rental Property
    • Royalties
    • CD’s

Certain taxable investments can provide liquidity for retirement income and other financial needs, as well as the ability to diversify your portfolio. Yet, income and capital gains taxes can reduce returns.

Deferred Accumulation Vehicles

    • Annuities

Tax-deferred products offer the power of tax-deferred growth and the ability to diversify. Any withdrawals taken prior to age 59 1/2 are generally subject to ordinary income taxes, plus a 10% federal tax penalty. What’s more, all capital gains are converted to ordinary income at distribution.



Anyone age 30-60 who wants to save money for retirement.

Indexed Universal Life Insurance:

We are weathering turbulent economic conditions these days. Given the debt crisis, we are seeing increased volatility in all economies.

As a result, fixed income products have been adjusted to provide such weak yields, they may not even keep pace with inflation, let alone accumulate assets for retirement. Additionally, those planning for retirement may be uneasy about exposing their finances to these fluctuations.

  • An Indexed Universal Life Insurance (IUL) policy may provide the opportunity to increase the Accumulation Value within the policy without exposing the Accumulation Value to downside risk.
  • An IUL policy offers multiple one-year Indexed Point-to-point Strategies to determine the interest, if any, to be credited to your policy as well as a Fixed Account Option.
Indexed strategies use the performance of an index, between specific time frames, to determine the interest rate applied to the policy, which may be subject to limitations, such as a cap or specified rate. A fixed account will earn interest at a rate periodically determined by the company. Interest is calculated using a compound method assuming a 365 day year and is credited at an annual effective interest rate. Any surrenders will reduce the amount of interest credited to your policy.