Why Should a Corporate Executive Consider Whole Life? 2 Reasons.

Corporate Executive

1. 401(k) Contribution Limits

Issue/Concern: If you are contributing the maximum to the plan, you may be looking for additional tax-favored options to contribute more funds.

Whole Life Insurance as a Strategy: Limits on premium deposits for whole life insurance contracts are extremely high, yet the tax-deferred growth of guaranteed and non-guaranteed growth elements, and if properly designed, the ability to create tax free distributions in retirement, provide an excellent option for additional, supplementary retirement contributions.

2. Market Volatility

Issue/Concern: Between 401(k) investment options, deferred compensation investment options, various discounted stock purchase plans, and the like, you may find yourself heavily invested in the stock market and continue to be more & more invested with every pay cycle.

Whole Life Insurance as a Strategy: The fixed, but competitive nature of the growth elements also provide diversification away from the stock/bond markets without giving up too much return. Typically, a properly funded, competitive whole life contract will deliver competitive internal returns.

This publication is offered for the purposes of education and information only and should not be considered tax or legal advice. For more information on your specific situation, please consult your legal or tax advisor. Neither Guardian, nor its subsidiaries, agents, or employees provide tax or legal advice.