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Getting Ready for Your Session

Make the most of your session with one of our advisors by watching the following seminar walking you through our most commonly asked questions. We highly recommended that anyone involved in the funding of this account be present for the online meeting. We can accommodate up to 20 people at a time. 


Life-Benefits: Common FAQs

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The Life-Benefits account is unlike most college savings plans. We've worked to create a product that is unique and with that we are often asked similar questions by or clients. We've put together this quick list of FAQ but have a full list available to you here

Why choose a Life-Benefits account over other saving plans?

The Life-Benefits account not only provides liquidity, safety, and an impressive rate of return but it does so in a tax favored environment, making it the ideal savings plan for your child's college needs and beyond.

How long do I have to pay into the Life-Benefits account? 

The Life-Benefits account is completely flexible. Many structure the account similar to a Prepaid College Plan or 529 College Savings Plan. Paying for the Life-Benefits account can be accomplished in as little as one year or as many as 20 years. It's up to you! 

How will the Life-Benefits account earn interest? 

Interest on indexed universal life policies are earned by a concept called policy-indexing credits. First, let me say these policies are fixed vehicles, which means the stock market cannot negatively impact your cash value. Next, let me say your return is based upon what an index (like the S&P 500) does on an annual basis. One caveat, you don’t earn all of the market gain. So, in a nutshell you get some of the up and none of the down instead of all of the up and all of the down.

 

What is a Life-Benefits account invested in?

The Life-Benefits account is facilitated through a properly structured cash value life insurance policy. 

Why would I open a life insurance policy on my child?

We aren’t necessarily opening a policy to provide a benefit from premature death as much as we are looking for a tax advantageous way to save for college and more. These types of polices work best over the long haul, so with a child, they could have decades and decades of tax favored, protected, compounding growth.

How is it possible to pay for college and provide a tax-free retirement with the same investment? 

This is possible because of a concept called safe positive leverage. Indexed universal life policies are unique investments in many ways. One, in particular, is the contractual loan provision they provide. These provisions allows one to borrow against the policy’s cash value, in other words, one can use the cash value as collateral and borrow the insurance companies money. And the loan is not required to be paid back during your child’s lifetime. 

 

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