Building to a finish

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Planning for retirement income is a daunting challenge for many Americans. In spite of diligent efforts to save, workplace matches to our 401(k)s and preferred tax treatment for certain financial products, “having enough money for a comfortable retirement” is still cited as a top concern for many of us.¹ Permanent life insurance can play an important role in helping clients get ready for their golden years, adding death benefit protection and asset growth that may be used to supplement a client’s investment portfolio and retirement accounts. A Prestige Indexed Whole Life policy in particular may be key to this process, thanks to its index-based growth and a 0% floor that prevents account value losses when markets decline.² Read on to see the policy in action.

Mark is a 45-year-old engineer who opened his own firm six years ago. Mark and his wife are hoping to retire early, 17 years from now, when she reaches 60 and he’s 62. As a result, he’s looking to turn a larger portion of his assets toward building up his retirement income. His financial professional recommends adding an Ohio National indexed whole life policy to his retirement portfolio. A Prestige Indexed 10 Pay policy has the potential to offer some of the tax benefits similar to Mark’s other retirement accounts, such as his Roth IRA, and only requires ten years of premium payments, giving Mark the flexibility to redirect his assets and strategy once the premium period ends. Unlike his Roth, his life insurance policy doesn’t have limits on the premium payments based on his income, meaning he can dedicate more money toward it in the hopes of growing his retirement assets more quickly, in addition to the death benefit being purchased. Mark decides to allocate $30,000 each year towards the premium payments for his Prestige policy, and these are his results:³ 

Under non-guaranteed current assumptions and interest crediting, Mark’s Prestige policy may be able to provide more than $30,000 in annual loans. If he is able to take these loans for 30 years, $300,000 in premium payments will have provided more than $900,000 to supplement the income he’ll receive from his 401(k), IRA, Social Security and investments. His policy has the potential to continue working for him for the rest of his life, offering an important source of growth and assets throughout retirement, and provide a death benefit when he passes away.⁴

¹ LIMRA Secure Retirement Institute: “The Retirement Income Reference Book: Fourth Edition” (2018).
² The account value may still decline due to cost of insurance charges and expenses deducted from the policy.
³ Example assumes a 45 year old male, Super Preferred rate class. Assumes 5.60% illustrated interest rate, index loans taken at ages 63-92, and $100,000 cash value target at age 100. Results depicted are based upon current, non-guaranteed rates. Non-guaranteed results may be more or less favorable than those shown.
⁴ Loans or withdrawals will reduce the policy’s death benefit.

This product is not approved for sale in California. Additional approval information will be provided as appropriate.

Indexed whole life insurance is issued by Ohio National Life Assurance Corporation. Guarantees are based upon the claims-paying ability of the issuer. Policy, policy features and rider availability vary by state. Issuer not licensed to conduct business in NY. ©2022 Ohio National Financial Services, Inc.

FOR FINANCIAL PROFESSIONAL USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. D-828101 8-22