Moon, 37 years old, female, a nail salon manicurist, has an income of $40-50K a year and excellent health.
– She wants to invest in a permanent life insurance policy from which she can withdraw money to supplement her retirement income when she retires at 60. She has owned a whole life policy for 4 years.
– Her whole life policy is by MassMutual. It offers $200K guaranteed coverage and she is required to pay $220 a month in premiums for the rest of her life. Currently, there is $3,500 in the cash value account of the policy.
– After shopping with 30+ carriers and their 90+ permanent products, we advised her to switch to an Indexed Universal Life Insurance policy of Allianz Life (Life Pro+ Advantage product). She will still pays $220 a month in premiums. However, she only pays until she reaches 60 years old (23 years).
– She will be able to withdraw up to $13,600 a year, tax free, for 30 years, from 61 to 90 years old, based on the illustration of the policy.
-If she passes away at 91 years old, her beneficiary can still receive $37K in death benefit, income-tax free.