Million Dollar Baby. Lee Duncan Vice President & National Training Director 678.969.9000 firstname.lastname@example.org. Agenda. Why “Million Dollar Baby” using IUL is so Important Quick overview of IUL portfolio Case Study Illustrating the concept
Vice President & National Training Director
Why “Million Dollar Baby” using IUL is so Important
Quick overview of IUL portfolio
Illustrating the concept
Underwriting and completing the application
Cash value can be used to help pay for college tuition and expenses, buying a home, retirement and everything in between.
Living Benefits in case of an illness.
Death benefit protection – protecting their insurability.
Can vary widely depending on institution; public vs. private
College costs are rising at twice the rate of inflation
Average annual tuition plus expenses at a private four-year college is about $35,000 (U.S. News, August 2010)
Americans now owe more on their student loans than they do on their credit cards.
College debt will surpass $1 trillion in 2012 – growing at a rate of $2,853 per second.
As of 2009, 67 percent of graduates had debt, averaging $24,000 per student (this does not include loans taken out by parents)
Student loan defaults have doubled since 2005
(CNBC, “Price of Admission: America’s College Debt Crisis”, 2012)
Varies widely across the U.S.
Average sales price of new homes sold in U.S. was $272,900 in 2010.
20% down would translate to over $54,000
Saving $1 million will only amount to about $40,000 per year for the average retiree (assuming you limit your withdrawals to 4% of your savings during your first year in retirement).
41% of women and 32% of men believe they will have to work after retirement just to make ends – retirement has become a luxury.
When the stock market was soaring people became obsessed with their nest egg number; now the focus is shifting to a more important number: how much retirement income your savings will provide.
…or the harvest?
(Base Face Amount + APB* Face Amount)
*Additional Protection Benefit Rider. Riders are optional, may require an additional premium and may not be available in all states.
Because college is seen as the immediate expense, parents often focus on saving for education and leave retirement funding solely to their children.
However, what we are experiencing RIGHT NOW is the risk of OUTLIVING your money.
Think about it this way - Most children are eligible for financial aid for education in a way that they are not eligible for in saving for retirement.
ANOTHER WAY TO LOOK AT IT
However, what we are experiencing RIGHT NOW is the risk of OUTLIVING YOUR MONEY
WILL FINANCIAL AID BE AVAILABLE FOR:
Will Consider face amount of coverage on a minor applicant EQUAL to that of the coverage on either parent (or legal guardian); unless state law dictates otherwise.
Ownership / Premium Payers for minors can be parents/legal guardians or grandparents ONLY.
Larger face amounts for a juvenile should include a detailed outline of the family / household income, net worth, premium funding sources, and any other supporting information.
HIPAA form is required for each child.
Signatures are required at age 15 and over, as well as an HIV form.
When all is said and done, a huge head start on their financial security could be the best gift you could possibly bestow…