Life Insurance Retirement Plan (LIRP), under Internal Revenue Code Section 7702

Will you have enough retirement income?

If you’ve caught yourself wondering whether or not you will have enough income at retirement to continue your current standard of living, you are not alone. In fact, having enough retirement income is one of the leading concerns facing Americans today. Due to the limits on contributions to Individual Retirement Accounts (IRA), Qualified Retirement Plans, and the uncertainty of Social Security retirement benefits, individuals earning high incomes may find that a diminishing percentage of their current compensation can be replaced at retirement through these traditional sources. This is where Life Insurance can help combat the reverse discrimination that hurts successful people.

As the chart below illustrates, as the annual income of an individual in a 401(k) plan increases, the percentage of compensation replaced by both the 401(k) plan and social security actually decreases.

Compensation

$50,000

$70,000

$100,000

$150,000

$200,000

$250,000

401(k) plan deposit
10% of compensation
1

$5,000

$7,000

$10,000

$15,000

$15,500

$15,500

401(k) plan income2
beginning at age 67

$17,148

$24,012

$34,307

$51,467

$53,183

$53,183

Social Security,3 beginning at age 67

$19,764

$23,424

$27,588

$28,644

$28,644

$28,644

Total Retirement Income

$36,912

$47,436

$61,895

$80,111

$81,827

$81,827

% of compensation

73.8%

67.8%

61.9%

53.4%

40.9%

32.7%

As you can see, the higher your earned income, the more you suffer from reverse discrimination due to limitations on qualified plans and capped social security retirement benefits.

Fortunately, there are solutions, one of which is the Life Insurance Retirement Plan, or LIRP.

The purchase of life insurance is a serious decision, with significant financial implications for you, your business, and your heirs. That is why it is always a good idea to use a professional insurance agent when purchasing life insurance. The best choice is an insurance agent that has earned the professional designation Chartered Life Underwriter.

For a FREE initial consultation with a life insurance agent that specializes in Life Insurance Retirement Plans under Section 7702, call today: (800) 680-5596

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