100 Century Parkway, Suite 240, Mt. Laurel, NJ 08054
Phone: 800-524-1774
Fax: 856-727-0600
Email: info@callums.com
THE CONCEPT OF LEVERAGE IN LIFE INSURANCE
Using leverage is a very common practice for most people. People purchase items today
with the hope that they will appreciate in value. Leverage allows people to enjoy more, sooner,
and for a longer period of time. Some examples of this would be:
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Using leverage to buy a bigger house today.
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Using leverage to purchase an investment property to rent or flip.
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Using a loan to expand a business without tying up cash flow.
Now, your clients can use leverage to enhance their life insurance benefits.
Clients can use this leveraging strategy to obtain more benefits today and potential cash
accumulation for their retirement future. The ultimate result is more financial comfort than
savings and traditional life insurance alone.
HOW DOES IT WORK?
Clients buy a permanent life insurance policy with living benefit riders*
that can provide benefits in the case of:
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Critical Illness (Cancer, Heart Attack, Stroke, etc.)
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Critical Injury (Coma, Brain Injury, Paralysis, Burns)
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Chronic illness (assistance with daily living, bathing, eating, dressing, transferring, etc.)
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Terminal illness (illness where death is expected within 12-24 months. Term varies by state.)
*Net of loan repayment, riders are supplemental benefits that can be added to a life insurance policy and are not suitable unless there is a need for life insurance.
They receive:
Cash Accumulation**
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Upside Crediting Potential (Interest Credited Based On Market Index)
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No Loss of Cash Value, 0% Floor (Due To Declines In An Index)
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Potential Growth Tax-deferred
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Potential Tax-free Withdrawal (Access to cash value using Tax-Free policy loans and withdrawals)
*Policy loans and withdrawals reduce the cash value and death benefit and may result in a taxable event if the policy is surrendered or lapses.
Contact John in the Life Department to see how this works in action.
We have software that can show you and your clients: 800-524-1774
DISCLAIMER
*Receipt of benefits depends on rider and meeting certain qualifications and varies by state. The use of one benefit may reduce or eliminate other policy and rider benefits. Payment of living benefits will reduce the cash value and death benefit. Substantial tax ramifications could result upon contract lapse or surrender.
**Surrender charges may reduce the policy’s cash value in early years. It is possible that coverage will expire when either no premiums are paid following the initial premium, or subsequent premiums are insufficient to continue coverage. The Kai-Zen Strategy is dependent on the employer making contributions for the first 5 years and not defaulting on the payment commitment, failure of which could result in policy lapse. The employee will not have access to the policy, the cash values, the death benefits or the living benefits until the loan is repaid and the assignment is released. This can be done at any time but must come first. The lender has the right to discontinue funding new premiums, exit the market, or to demand loan repayment based on the terms and conditions signed by the Master Trust. See the Master Trust documents for additional information. Receipt of accelerated benefits may be taxable and may affect eligibility for public assistance programs. This information is not intended as tax advice. Please consult with your tax advisor regarding your own situation. Not all riders are available by all life insurance companies.