Taming Market Volatility with a Flexible Retirement Strategy

Clients are seeking strategies that can help protect their retirement savings from market volatility. Taking income from an equity-based retirement account during a period of negative returns can have a significant adverse effect on the future value of the account. Alternate sources of income that retirees can depend on during market downturns include bank products such as certificates of deposit, investments such as money market funds and short-term government bond funds. Another option to consider, that can add flexibility to your client's retirement portfolio, is whole life insurance. In addition to providing permanent life insurance protection, whole life: 

• Accumulates guaranteed cash value that increases each year on a tax-deferred basis, and never decreases in value due to market conditions
• Allows policyowners to access their available cash value on a tax-advantaged basis* 
• Can be used to help supplement income in retirement

*Distributions under the policy (including cash dividends and partial/full surrenders) are not subject to taxation up to the amount paid into the policy (cost basis). If the policy is a Modified Endowment Contract, policy loans and/or distributions are taxable to the extent of gain and are subject to a 10% tax penalty if the policyowner is under age 59½.

Access to cash values through borrowing or partial surrenders will reduce the policy’s cash value and death benefit, increase the chance the policy will lapse, and may result in a tax liability if the policy terminates before the death of the insured.

Clients have unique needs, and the flexibility of the whole life solution can be key to success in meeting those needs. It’s helpful to demonstrate possible scenarios.

• This sales presentation is for Financial Professionals, Advanced Sales Success Strategy: Taming a Bear Market in Retirement illustrates how a Whole Life 10-Pay policy can help tame the effects of a down market on your client's retirement income.
• Simplify Client Presentation: Taming a Bear Market in Retirement can be used to show clients how a whole life insurance policy — as an asset not correlated to the market — offers them death benefit protection and cash value accumulation during their working years.
• See this client demonstration of how a life insurance policy can help protect retirement savings from market downturns.

Let’s succeed together and address your clients’ concerns about market volatility.

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