Income Replacement Strategy

Income Replacement Strategy

• Client Profile
  • Dependent minor children, dependent adult children, dependent spouse, or other dependents.
  • Significant mortgage or other debts.
  • Major future expenses, such as childcare, post-secondary education, etc.
• Solution Opportunity
  • Determine insurance amount through use of Needs Analysis worksheet.
  • Use permanent insurance to fund this liability, while at the same time allowing for tax-deferred growth of any over-contributions.
  • This strategy may often dovetail into other strategies, as the clients’ needs mature.
  • For cash flow –constrained clients, may utilize small UL core with Term riders, with plan to convert to permanent as situation improves, or to allow some of the riders to expire, as children grow to adulthood, etc.