1. 0 POINTS
    David RacichPRO
    Fountain Hills, Arizona
    A life insurance retirement plan is a nonqualified, tax deferred cash value accumulating policy. To maximize the accumulating cash values, the policy must be designed with lowest cost of insurance death benefit option non modified endowment contract. The contract death benefit and death benefit options must be managed throughout the life on the insurance to minimize the cost of insurance. There are several crediting methods available depending upon your risk tolerance. If the contract is designed correctly, the policy can generate tax free withdrawals to basis and policy loans of gain as long as the contract is kept in force for the life of the insured.
     
    Answered on July 3, 2013
  2. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Cash Value life insurance can be used as a non-qualified supplemental retirement plan. There are four crediting methods to choose from: participating dividends, interest rate, indices and separate sub accounts using equities and bond investments. The design is critical to the expense loads. A TAMRA compliant non modified endowment contract using the lowest cost of insurance death benefit option can reduce the internal charges. As long as the contract is kept in force for the life of the policy insured, distributions can potential generate tax free income.
    Answered on July 31, 2013
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