But remember the Lord your God, for it is He who gives you the ability to produce wealth, and so confirms His covenant, which He swore to your ancestors, as it is today. - Deut 8:18
CASE STUDY
GRAND PARENTS
John and Emily have a total of 7 grandchildren. It was crucial for them to ensure educational funding for all of them. Furthermore, they aimed to create a lasting inheritance for their 3 (older) children. They also sought to minimize substantial estate tax responsibilities. Lastly, they emphasized the importance of having the flexibility to access the funds when necessary.
After exploring various options, JFF Life presented them with a comprehensive plan. This plan comprised 10 separate accounts: one for each child, legacy, and a dedicated one for John and Emily themselves. What proved highly advantageous was the creation of an income stream from one account, which then flowed into the other 9 accounts. This strategy left John and Emily deeply content about the legacy they were establishing.
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Mark and Sophia have two children, ages 6 and 9. They've been occupied with work, striving to manage their expenses. They're currently dealing with a mortgage, a car loan, and haven't started saving for retirement. They're also without life insurance. Mark worries because he's the primary earner, fearing the potential financial consequences if something were to happen to him.
To secure Mark and Sophia's family, we promptly initiated a life insurance policy, providing a $700,000 death benefit in case of Mark's passing until age 120. This coverage aims to safeguard their mortgage and offer financial stability in case of critical illness or injury. Alongside life insurance, they established a cash accumulation sub-account as a short-term emergency fund while strategizing for long-term retirement income in the years ahead.
Single Male Professional
Derek is a 40-year-old single man working as an IT Manager, earning $125,000 annually. He's focused on securing a solid retirement plan and isn't particularly concerned about life insurance. His primary objective is to establish a reliable stream of income for retirement. While he's interested in growing his wealth through the stock market, he's also cautious about market volatility.
Derek was intrigued by a plan that involved a 5-year annual funding structure, which seemed fitting considering his current assets and financial obligations. He concluded that leveraging his high current income and the available 3:1 leverage within this plan was advantageous. Moreover, the plan offered the potential for tax-free income starting at age 65 and lasting until he turns 90. Additionally, Derek would be covered by a $1.5 million life insurance policy, a substantial portion of which could be accessed as 'living benefits' in the event of critical, terminal, or qualifying chronic illnesses.
Retired Couple
David and Sarah, a retired couple, were both worried about the sustainability of their finances, particularly given the recent market instability. They aimed to maintain their current lifestyle while being financially cautious. They sought reduced risk while still pursuing growth opportunities in the market. Concerns about potential long-term care needs and its impact on their residual income also weighed heavily on their minds.
In light of David and Sarah’s circumstances, securing a guaranteed stream of income became the focal point of their new financial plan. The created account allowed them to engage in market participation for potential growth while ensuring complete protection from market downturns. Their principal remained shielded from any market-related risks or losses.
Older Woman with expiring policy
Anna, aged 55 or older, had an expiring policy and reached out to our team seeking help in assessing her coverage. Initially believing she held a 30-year term, she discovered she actually had a 15-year term policy. With 15 years remaining on her mortgage, Anna was hesitant to burden her children with the debt but worried about approval due to her medical conditions.
Our team sprang into action to assist Anna. We secured a 20-year term policy that covered the outstanding mortgage balance, priced just over $125 per month. This policy not only provided coverage for her mortgage but also included living benefits and accidental death coverage.
