Legacy building is a strategy using permanent life insurance to offer death benefit protection along with an efficient way to pass along assets to beneficiaries. Typically, the strategy starts with funds the client already plans to pass along to family. These funds are transferred to a life insurance policy, which may immediately increase the amount in the form of the death benefit.

Client Profile:
People who can benefit most from legacy building are usually within retirement age and have assets set aside for heirs, charity or to help pay educational costs for grandchildren. Here are common traits for clients seeking a legacy building strategy using life insurance.

• Is within the retirement ages of 55-75 and has a retirement plan in place
• Needs death benefit protection or currently holds an underperforming life insurance policy
• Holds funds designated to leave to heirs or children in certificates of deposit (CDs), savings accounts, or money market accounts, especially accounts designated as “payable/transfer on death” or POD/TOD
• Has titled assets jointly with heirs
• Has annuities coming out of surrender
• Currently takes required minimum distributions (RMDs), but doesn’t have a current need for the funds

Helpful Tips:

• Consider a death benefit guarantee product:* The death benefit guarantee offers assurance that the benefit will be available.
• Accelerated Death benefits: Available to help with living needs should conditions be met.
• Look to maximize the death benefit that fits your clients’ needs: Help your clients purchase the largest amount of death benefit for their needs that an asset transfer can provide.

Sample Cases:

• Sample Case One: Fixed No-Lapse Guarantee UL
  This universal life insurance product offers a competitively priced guaranteed death benefit.* For many clients, the guaranteed death benefit provides assurance that the death benefit will be available for beneficiaries. Consider Susie, a 68-year-old woman who is classified as preferred non-tobacco. She has $75,000 total designated for her two children when she dies ($37,500 each). With a one-time dump-in of $75,000, she gains a death benefit of $146,867 ($73,433 each), which is a significant jump in funds for her children! Consider a fixed no-lapse guarantee UL for your next legacy building case.
  
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• Sample Case Two: Protection Builder IUL 2
  This indexed universal life (IUL) insurance product may be ideal for legacy building scenarios. The policy offers a guaranteed death benefit,* and the IUL design may generate significant cash value. Paul, age 70, is in good health and is classified as standard non-tobacco. He has prepared well for retirement and has set aside $100,000 in a certificate of deposit that he plans to split up equally among his three children. While he is interested in leaving this money to his kids, he also would like to retain access to the money for those “what if” scenarios. With the dump-in, he immediately gains a death benefit of $191,473 guaranteed to age 100 and maintains access to potential accumulated cash values.
  
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*Subject to premium payment requirements.