Lifetime income

You work hard to earn money throughout your life. You want to make sure that you have enough income and savings to enjoy your retirement and live the way you want. But how can you be sure that your lifetime income will be enough and secure?

Your lifetime income is not a fixed or guaranteed amount. It can change depending on many things, such as inflation, taxes, market ups and downs, career changes, health issues, and how long you live. That’s why you need a smart financial plan that can help you make the most of your lifetime income and protect it from different risks.

At Wealth Ladder Consulting, we help you understand your lifetime income and make smart financial decisions for wealth accumulation. We use a balanced investment approach that balances risk and reward, while using the tax benefits of IRS code 7702.

IRS code 7702 is a part of the U.S. tax code that tells you the rules for cash value life insurance policies and how to keep them tax-advantaged. Cash value life insurance policies are life insurance policies that also have a savings part, which can grow over time and give you income in retirement.

The policy has to be a “life insurance contract” as the IRS says, which means it has to give a death benefit that is at least as much as the premiums paid or the cash value, whichever is more.

The policy has to pass either the cash value accumulation test (CVAT) or the guideline premium and corridor test (GPT), which limit how much premiums you can pay into the policy without it being a taxable investment.

The growth of the cash value is tax-deferred, which means you don’t pay taxes until you take the money out or end the policy.

The withdrawals and loans from the cash value are tax-free, as long as the policy stays active and doesn’t become a modified endowment contract (MEC), which is a policy that doesn’t meet the IRS code 7702 rules and loses its tax-advantaged status.

The death benefit is tax-free to the people who get it, no matter how big the policy or the cash value is.

A cash value life insurance policy can help you increase your lifetime income and wealth accumulation, as it can give you:

A guaranteed income stream that can add to your other sources of retirement income, such as Social Security, pensions, and annuities.

A way to fight inflation, as the cash value and the death benefit can go up over time with the performance of the investments or the policy dividends.

A way to protect yourself from market risk, as the cash value and the death benefit are safe from losses due to market drops or swings, as long as the policy stays active and the premiums are paid.

A way to protect yourself from living too long, as the cash value and the death benefit can give you income and protection for as long as you live, no matter how long you live.

At Wealth Ladder Consulting, we can help you create a cash value life insurance policy that fits your needs, goals, and risk level. We can help you pick the type of policy, the amount of coverage, the premium payment plan, the investment options, and the withdrawal and loan strategies that work best for you.

We can also help you check and change your policy over time, as your situation and goals may change. We can help you see how your policy is doing, update who gets the money when you die, and make any changes to your policy to make sure that it keeps meeting the IRS code 7702 rules and gives you the best tax benefits.

If you want to know more about how we can help you boost your lifetime income and wealth accumulation with a cash value life insurance policy under IRS code 7702, please contact us today for a free chat. We are happy to hear from you and help you reach your financial goals.