Maximize
your Client Retention by Minimizing their Taxes
Author:
Dave Inglis (National Life)
Do
you have clients with large sums of money sitting in non-registered investments?
If so, each year taxes on the growth of that money reduce the return on their
investment by as much as 50%. Over the long-term, that can translate into
tens of thousands of dollars unnecessarily lost to taxes. How do you protect
your client’s hard-earned money? It’s easy. An NL Universal Life
policy with a Minimized death benefit will allow them to defer taxes on their
non-registered assets, and take full advantage of long-term compound growth.
The
graph below shows a comparison between $100,000 invested in a non-registered
alternative investment earning 7% per year and the same amount invested in
an NL Universal Life plan earning 6% per year. As you can see, over time
the amount lost to taxes on the alternative investment (assumimg a 50% tax
rate) is quite substantial.
When
your client selects the Minimized death benefit, National Life will automatically
calculate the minimum amount of insurance needed to keep the policy tax exempt.
This means that your client is paying the minimum amount of insurance charges
monthly, allowing the remainder to grow tax-deferred within the policy.
The
Minimized death benefit is used with the Retirement Income Maximizer strategy
to help your client increase their retirement income. Or, if your client
does not require the tax-deferred fund accumulation in the policy, they can
name a beneficiary, who will receive the death benefit tax-free.
Whichever
way you use the Minimized death benefit, the tax-deferred growth in NL Universal
Life can increase your clients’ wealth. Click the button below to run
an NL Universal Life projection today and see how.
