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The problem
A cash value life insurance policy for retirement planning designed poorly with limited focus on long term goals
The Clinical Associate is in a period of growth and planning, she has stable income and wants to control her future and finances which led her to have conversations around legacy and retirement planning.
We live in a world where what we do now affects our future. If we don't think about what's ahead, we might not be ready. Without planning for the future, we can't make the choices needed for stability and success. The clinical associate is a bright and ambitious woman, she is single, in her late 20s, with no children. Her existing retirement strategy relies on a poorly structured cash value life insurance policy, offering limited long-term cash value and retirement income efficiency.
The associate entered the policy in 2020 without thorough comprehension, guided by her agent's recommendations. She was persuaded to switch to a purportedly superior option in 2023 by the same agent, yet remained unaware of the details of why. Essentially she didn’t really know if she was doing the right thing, but she switched over anyway. Wanting to get a second opinion she made an appointment with Women Financial Power, uploaded her policies for assessment.
Women Financial Power identified that the customer had two life insurance policies one term life insurance policy for $1 million in life insurance and a whole life insurance policy with $325,000 in coverage, projected in the whole life policy for retirement was an annual income of $14,436 upon reaching age 65. Despite being childless, not owning a home or any debt she possessed over $1.3 million in life insurance and a small projected cash value for retirement.
Solution
All in one solution for retirement, long term care and legacy planning with education and understanding
The Clinical Associate partnered with Women Financial Power to establish a cohesive and suitable retirement plan. Initially on the discovery call, Women Financial Power conducted a comprehensive review of her existing arrangements. The customer was told the policy the agent enrolled her in in 2020 wasn't as good as the one he enrolled her in in 2023. After reviewing the first whole life policy she originally had with the agent, it was slightly better than the one she switched over to with that agent. Women Financial Power clarified that she was enrolled in a whole life plan in 2020, and the agent was captive and switched companies, so she was enrolled in another suboptimal whole life policy that the agent could offer.
This scenario, where agents transition clients to new companies irrespective of their best interests, is not uncommon. The previous policy, orchestrated by the agent, offered better terms than the current whole life insurance policy especially since she had purchased it at a younger age. The Clinical Associate kept letting us know the agent kept telling her to switch so she can "lock in rates"
At Women Financial Power, we accentuate the virtues of whole life insurance, spotlighting its rock-solid guarantees and the accumulation of cash value. When we offer whole life to our clients it's because it's a sharp tool for slashing through debt and assuming the role of being your own banker. During our discovery session, we sliced through the layers to uncover the true purpose behind the policy. We probe: "Is it geared towards obliterating debt or using Infinite Banking?" The clinical associate asserted her ambition was to blueprint a long term retirement plan.
At Women Financial Power, we believe in educating women on how to take control of their future. Our mission is to provide clear, strategic guidance that protects what matters and supports long term financial stability.
Result
Improved retirement strategy, real understanding, and a better experience
The collaboration with Women Financial Power yielded significant improvements in the Associate's retirement plan. With a properly structured cash value life insurance policy, she obtained a comprehensive understanding of her retirement strategy and a plan designed for sustained growth. The Universal Life policy designed by Women Financial Power offered superior terms compared to her previous arrangement. The new plan allowed a projected retirement income of $117,360, significantly higher than the previous $14,436 projection.
Transitioning to Women Financial Power instilled a sense of empowerment and understanding in the Associate. The process emphasized the importance of informed decision-making and underscored the necessity of aligning financial strategies with individual goals. By prioritizing client education and needs assessment, Women Financial Power makes clients feel confident and empowered in their decisions, ultimately fostering more efficient and effective plans.
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