04/13/2026
I had someone ask me about supplemental retirement plans, she mentioned she had went to her HR department and they told her to look into IUL's so she asked if I knew about them. I told her that's the WORST thing you can do to supplement your retirement. I then broke down to her how insurance works, what it's meant for & how to price life insurance.
If a 35 year old male needs $1,000,000 to protect his income for his family, he can get that coverage with a living benefits 30yr term policy for about $94-$175 monthly depending on his health. Now he is good for the next 30yrs, income protected be it premature death or critical illness & he doesn't die.
Now if he wants to supplement his retirement or does not have a retirement, and he has the means lets say hypothetically he can set aside $625 a month, using a compound interest strategy, lets say the fund averages 7-10% growth. We will go with 8%. Look at the illustration of how much money one could potentially have in 30yrs.
Their money, they don't have to borrow it, it goes to their beneficiary at death, including the life insurance because they have a policy, its immediate growth without a gimmick to get immediate growth & its reasonable for the budget.
Buy Term Invest the Difference
This is how you supplement retirement the right way, $2,000,000 estate. At this point he can keep the insurance policy if he wants or let it go. If we do everything right from the beginning, the insurance becomes an option, not a need. Then we discuss ways at that time of the best distribution method to receive & now protect your retirement funds.
