Social Security Maximization Using Life Insurance

Social Security Maximization Using Life Insurance

Are you working with wealthy clients that are at or near retirement age?  If so, some of these clients may be collecting Social Security income benefits that they don’t need.

Life Insurance can be used as a powerful tool to leverage Social Security payments for future generations.

Here is a case study that shows exactly how this concept works using Life Insurance:
  • A male age 69 and his 65 year old spouse were taking a total of $24,000 annually from Social Security that they didn’t need for income purposes.  Based on their current tax bracket they were netting approximately $14,000 per year.
  • After meeting with their insurance broker they decided to gift $14,000 per year into an Irrevocable Life Insurance Trust to fund a Survivorship Universal Life Insurance policy.
  • This allowed them to purchase a 973K Life Insurance policy that would pay out to the trust, helping them create a lasting legacy for their children and grandchildren for years to come.

For this couple the decision was rather simple.  Do nothing with the unneeded Social Security income or leverage that benefit to fund a legacy trust for the benefit of their heirs for years to come.

For more information about how your clients can use Life Insurance to maximize unneeded Social Security benefits call your Life Sales & Marketing Associate.