WealthPRIME®

Leveraged Life Insurance

WealthPRIME Leveraged Life Insurance

Leveraged Life Insurance can generate significant tax-free income at retirement. Leveraged Life Insurance is a unique investment vehicle because it can be partially financed by a bank. Utilizing bank leverage to purchase a larger amount of tax-free income is no different than using a mortgage to purchase a larger home.

The amount of income you can generate varies based on your age and investment. But many investors can generate up to $200,000 per year in retirement by making $50,000 payments over five years. When combined with the purchase of a WealthPRIME Conservation Easement, the investor is using the combination of bank leverage and tax savings to fund most of their retirement distributions, at close to zero cost.

Imagine a 40 year old investor securing leverage (from the bank), and making five annual payments of $50k, (called a 5 pay). The investor lets the investment mature until age 71. They can then draw or distribute over $200k per year for 15 years, TAX-FREE.

Smart Strategy #2: Leveraged life insurance

Investment
$50,000 (5 years)

Tax-free income
$200,000 (15 years)

Pay $50,000 for 5 years

Wait until age 71

Receive $200k from ages 71-85 (15 years)

How much can I save?

Explore the following scenarios which will help you determine how much your tax savings can be, based on your age and income.

Jane Investor

Age: 35

Select income:

Estimated Tax Savings

$100,000

Annual Tax-Free Income
from Ages 71 to 85

$299,328

Tim Investor

Age: 40

Select income:

Estimated Tax Savings

$100,000

Annual Tax-Free Income
from Ages 71 to 85

$217,219

Eric Investor

Age: 50

Select income:

Estimated Tax Savings

$100,000

Annual Tax-Free Income
from Ages 71 to 85

$112,106