Protect your income. Build beyond the usual limits.
A high income raises both your lifestyle and your obligations. Therefore, strong protection matters, and supplemental wealth strategies can build on your traditional retirement accounts.
Retirement accounts help, but they have limits.
Employer plans and IRAs cap how much you can contribute each year. As a result, a high earner may want additional ways to save.
Permanent life insurance offers one such option. For example, indexed universal life and whole life build cash value that you may access through loans and withdrawals, although doing so reduces the death benefit. Moreover, the death benefit protects your family and can support legacy and estate goals.
However, permanent insurance does not replace retirement accounts. Instead, it complements them, so your agent builds it into a broader plan alongside your tax professional and financial advisor.
Four ways coverage supports your plan.
Income protection
A higher income supports a higher standard of living. Therefore, term life can replace that income so your family keeps its lifestyle if you pass away.
Supplemental savings
Permanent policies build cash value alongside your other savings. In addition, you may access it through loans and withdrawals, although doing so reduces the death benefit.
Retirement income
Some clients use policy loans and withdrawals to supplement retirement income. However, this requires careful funding, so your agent designs the policy with that goal in mind.
Legacy planning
The death benefit can help pass wealth to the people you choose. Moreover, your attorney can coordinate it with your estate plan.
Simple, personal and handled by phone.
Share your goals
Tell your agent about your income, your current coverage and your long-term plans. Then explain what you still want to accomplish.
Review the plan together
Next, your agent shows how permanent coverage may fit beside your retirement accounts, and you review the tradeoffs together.
Coordinate with your advisors
Finally, your tax professional or financial advisor reviews the plan, so every piece works together.
Options high earners often consider.
Wealth Building (IUL)
IUL links cash value growth in part to an index, while its permanent coverage lasts a lifetime.
Learn moreWhole Life Insurance
Whole life offers guaranteed cash value growth, so it suits clients who value predictability.
Learn moreAnnuities
Annuities turn savings into retirement income, and you choose how to receive it.
Learn moreHigh earner questions, answered.
Why would a high earner consider permanent life insurance?
Retirement accounts limit annual contributions, so some high earners look for additional options. Permanent life insurance provides a death benefit and builds cash value, and it may serve as one part of a broader plan.
Is life insurance a substitute for my 401(k) or IRA?
No. Life insurance is not a retirement plan. Instead, it can complement your accounts, so please discuss it with a qualified tax or financial professional.
Is the growth guaranteed?
It depends on the policy. IUL cash value growth is not guaranteed, because caps, participation rates and policy charges apply. In contrast, whole life cash value grows at a rate the contract sets, and that guarantee depends on the claims-paying ability of the issuing company.
How much can I put into a policy?
Limits depend on the carrier, the policy design and federal tax rules. For example, funding a policy above federal limits creates a modified endowment contract, which changes how loans and withdrawals are taxed. Therefore, your agent designs the policy with those limits in mind.
Indexed universal life insurance is not an investment in the stock market or in any index, and it is not a security. Cash value growth is not guaranteed, and caps, participation rates, fees and policy charges apply. Loans and withdrawals reduce the death benefit and cash value, and they may cause the policy to lapse or create a tax liability. Opulent Life Financial does not provide tax or legal advice, so please consult a qualified professional.
Ready to build beyond the limits?
Speak with a licensed agent by phone, or request your free quote online. Your dedicated agent will then walk you through your options.