We are licensed with one priority—you and your family. Therefore, our team is strongly committed to helping you find the best annuity, life and health insurance coverage policies customized to fit your needs, goals, and budget so that you and your family can experience and enjoy the best things in life worry-free!
Medical professionals like physicians, nurses, doctors, and dentists work in very risky life saving fields at the hospitals. They, too, need plans that can help them save for retirement and protect their families from financial burden in case of their sickness, injury or death.
For example, they can fall sick or die after getting infected from their patients or experience pain, illness and burnout from long work hours and demanding nature of their profession. They need a plan that provides coverage in such a scenario. Also, as they are high-income professionals, most intend to live a similar lifestyle even after retirement. Indexed Plan/IUL comes with Tax-Free Retirement plan, life insurance, and medical insurance, such as chronic illness, critical illness, and terminal illness.
Although several retirement and tax saving plans for developing a robust retirement income such as 401k, Roth IRA, SEO IRA, Solo-401k, and UNI-401k, we recommend Index Universal Life (IUL) Insurance for high earning income professionals. Here are the top reasons that make IUL for medical professionals the best choice:
The main purpose of using this policy is to accumulate wealth through a tax-deferred interest crediting basis. The excess premium paid by the policyholder is placed in the sub-account that continues to earn interest on an index like S&P 500 or NASDAQ. IUL is an attractive option because it is not as volatile as other policies available in the market. This is because your money is not invested in the equities in real, but the insurance company mimics the index returns.
Graph 1 shows investment in IUL (Indexed). It’s like a staircase. Money always goes up or stays the same. Your savings never go down as shown in Graph 2. It earns compound interest on indexed based formulas. Your investment is earning money rather than losing.
So what is an Indexed account? Fig 1 shows money goes three ways. Goes up, stays the same or goes down. In an indexed account money goes up or stays the same but never goes down. Your money is protected from going down. It is a guarantee that you will never lose money.
Graph 1 shows StairCase and Table 1 shows Variable Account (401(k) vs Indexed plan. When the market is 50% down, saving in an Indexed plan stays the same at $1000. When the market goes 50% up, indexed accounts accumulate 50% interest. So the Indexed account will have $1,000 + $500 = $1,500 in savings.
Graph 2 shows a variable chart and Table 6 shows a variable account. When the market is 50% down, saving in 401(k) loses $500. When the market goes 50% up, saving in 401(k) earns $250. This comes out to be $500 + $250 = $750 in 401(k) savings.
Now we know how the market plays a big role in our investments.
Indexed Universal Life insurance policy emphasizes the cap and floor rate. Therefore the returns are guaranteed because of the floor rate the policy offers. This further means that even if the index is in loss, your account will be credited. The policyholder will not lose any money or be negatively impacted in any given situation. For example: You policy has cap rate of 13% and market performs 15%, you will get 13% of the market performance. If market performs -4%, floor is 0%, you will not lose money. This is why it calls “Zero is Hero.” Over the last 20 years, market has performed close to 80%
Our life is unpredictable. No one knows what will happen at any age. Spending too many hours at work is a leading cause of burnout, heart attack and stroke. What if you had a heart attack and treated at the hospital. Health insurance pays 50 to 80%, rest 20 to 50% comes from your savings. What if insurance pays the 20 to 50% would you call it an investment? Yes, I will. This insurance policy covers heart attack, stocks, cancer, heart disease, lung disease, liver disease, and more at no extra cost. Moreover, this policy gives you tax-free retirement for life with other benefits.
Life and health fragile and no one know what will happen tomorrow. You don’t have to buy Terminal Illness, Critical Illness, and Chronic Illness coverage because it comes with a policy.
IUL offers a great retirement plan as long as you continue to make payments on the policy, the cash value will grow tax-deferred. If you start early, by the age of 65 you will have good tax-free retirement for life. Upon your death, your family will get the tax-free death benefit.
However, if you withdraw money from the policy before age 59 ½ you may have to pay tax on gain. Please note that if the loan is not paid back, your death benefit will be used to balance the loan due. This is where you have to be careful about it
Another reason why IUL/Tax-Free retirement plan is the best option and most preferred is that IRS has established no limit with premiums paid with indexed universal life insurance into LIRP (life insurance retirement plans). However, options like Life Insurance Retirement Plans such as 401k or IRA have limitations.
For example, in a 401(k) plan, the annual contributions are limited to approximately $20,500 annually. This can seriously impact your wealth accumulation when you reach the mandatory distribution age of 70 ½.
IUL is insurance with death benefit plus it has living retirement benefit. This makes the policy benefit in both ways. If you, the policyholder, die early, your beneficiary will be given a tax-free death benefit, thereby it becomes easier for them to pay for your funeral expenses without the financial burden. On the other hand, if you live long, you can enjoy the savings after retiring and continue to maintain your lifestyle.
Physicians, Dentists, and DVM’s can take money out from saving for their business without penalty at any age. If you have a 401(k) policy and wish to withdraw money before 59 ½ years of age, you will have to pay income tax on the withdrawal amount. In the majority of cases, this is around 10 percent. However, with IUL, you can withdraw money at any time without any tax liability or penalties.
This policy is a very powerful financial tool for protecting the financial well-being of your family for decades to come—even after death. With this policy in hand, you will have the flexibility to build assets and deal with life's uncertainties. Ever since 2020, many medical professionals, including physicians and nurses, have lost their lives in the quest of saving others from COVID-19. They are our real heroes.
Nonetheless, those medical professionals at the forefront, putting their lives at risk in saving the lives of patients from COVID-19; they need their own and family protection if something happens to them. You can borrow against the savings in policy for your children’s education, down house payment, or buy a car. Medical coverage can be used for any uncertainties that may come in future.
Withdrawals will reduce your cash-value dollar to dollar. Full Surrender may have some tax implications. With IUL, you get the flexibility of taking out a loan without facing penalties, credit checks, or taxes. It will not reduce your cash-value account. Moreover, you don't have to return the money you take out. This makes the policy far more attractive than other options available.
1. Flexible premium, skip premium
2. Option to pay a minimum premium to keep policy in force
3. Option to pay maximum within federally established tax lay
4. Tax free retirement
5. No plenty and age limit on early withdrawal
6. Take loan against the cash value while cash value is earning interest
7. Saving never run out as long as you live
8. Death benefit – Family protection
9. Fast cash accumulation, Cash Value – Saving account
10. Risk free – Never loses money even the market crash. In 2008, 401k lost money but IUL didn’t
11. Loan option to buy house, car, medical bills
12. Tax free education plan
13. Full access to saving account
14. Not considered an asset when calculating the amount for financial aid
15. Use money at any College & University
After using money for college education, continue paying premium, Your Child would have:
(1) Tax-Free Retirement Plan for your Child
(2) No need to buy family protection for his family.
(3) If in some case bad happened with health, you child will be covered under critical illness, chronic illness and terminal illness
(4) Take money out for house down payment or buy new car or buy business
(5) Premium will never go up like other life insurance companies.
It's always wise to have a life insurance policy for your children and grandchildren. This is not the reason that they die before you and you collect the money. It creates (1) College saving (2) Tax-free retirement. (3) Family protection and (4) Medical Benefits, such as chronic illness, Critical Illness, and Terminal Illness.
CLICK HERE FOR VIDEO IN ENGLISH COLLEGE SAVING PLAN
CLICK HERE FOR VIDEO IN SPANISH COLLEGE SAVING PLAN
CLICK HERE FOR VIDEO IN ENGLISH EXAMPLE: 42 YEAR OLD MALE RETIREMENT PLAN
© 2022 American Financial Consulting. All rights reserved.