Kathleen and Don are both doctors, married, and 30 years old
How should they invest their money?
Supplementing their 401(k) with taxable investments
Annual cash flow after taxes $408,231
Supplementing their 401(k) with taxable investments and Life Insurance
Annual cash flow after taxes $514,713
Here are the results for Kathleen and Don
|Taxes||Net Cash Flow|
|401(k) and Taxable Investments ONLY||$98,461||$408,231|
|401(k), Taxable Investments and Life Insurance||$86,487||$514,713|
Death Benefit at age 92 → $364,085*
Added Annual Cash Flow → $106,482
An example is hypothetical and for illustrative purposes.
*Death benefit will decrease over time (e.g. approx. $73,000 at Age 95; $10,000 at Age 100) but invoking the Overloan Protection riders will guarantee the policies will not lapse