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High Net Worth Clients? No problem.

Updated: Jun 18, 2020

Written by: John Countryman As I was sitting here thinking about life insurance for higher net worth individuals, a few things are going through my mind. There are strengths in every life insurance plan, but some are more suited to a person who makes over $100K. Often people choose to finance big purchases like homes and cars. People who need more life insurance protection may wish to finance that as well. Financing their life insurance over 5 years, offers a few benefits.

Having worked with life insurance agents for many years, I would like to introduce you to something I call the 5 Pay Tax-Free Plan for Retirement. This unique non-collateralized premium financing program allows your clients to have life insurance PLUS the added benefit of supplemental funds for retirement, potentially tax-free, in 5 annual payments. What are the benefits of such a plan? I have listed them for you here:

• Provides tax-free growth and tax-free retirement income.

• Payments are leveraged 3-1 creating much greater benefits.

• No contribution limits.

• No assets are pledged and no signature guarantees.

• Only $100K of annual household income to qualify.

• Catch up on planning for retirement with other people’s money.

• Protects against the high costs of a chronic illness.

• Self-completing plan for retirement in case of pre-mature death.

• Create a reliable residual income for your practice.

Often, clients don’t realize all the benefits of using one type of life insurance or program over another. As agents, we are in a position to help clients find the products best suited to them and their goals. As they share with you what they want from their financial portfolio, you can show them solutions that use this leveraging strategy to obtain more benefits today as well as potential cash accumulation for their future. The result is more financial comfort than savings and/or traditional life insurance alone. To see it in action, give me a call at 800-524-1774. I can show you how it works with a sample client or even a real client you have in mind. If you can help your clients, they can recommend you to others and everyone wins!


Proceeds from an insurance policy are generally income-tax-free, and if properly structured, may also be free from estate tax. Income-tax-free distributions are achieved by withdrawing to the cost basis (premiums paid), then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value, and reduce the death benefit, or cause the policy to lapse. This assumes the policy qualifies as life insurance and is not a modified endowment contract.

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