The Leveraged Distribution Strategy® – Cases Study 1
by Tennyson Capital Partners
Maximizing the tax benefits of permanent life insurance to provide significant tax-efficient income potential in retirement.
The Client
• 48-year-old business owner
• Earns $500,000 annually
• Net worth of $4.5 million
• Needs additional life insurance to replace income
• Needs additional retirement income and has maximized qualified contributions
• Comfortable allocating up to $25,000 quarterly for ten years
A common challenge among successful entrepreneurs is the need to simultaneously create and grow wealth both inside and outside of the business. These are competing priorities for some, while others may find a custom premium finance plan may provide a potential solution. A bank may finance premiums, making it easier to reinvest in the business. In doing so, the life insurance policy is positioned to create potentially significant tax-efficient income throughout retirement, while safeguarding legacy with the policy death benefit.
