Custom Whole Life

The market has now produced several years of consistent growth.  We do not know when the market may reverse course and begin to slide downward.  That is why it is important to review your investment portfolio each year to evaluate its gains and/ or losses, and to determine if it is diversified enough to help achieve your financial objectives.

For some, a strategy to periodically “lock in” market gains by transferring some of the portfolio growth into a fixed alternative can protect those gains against future market downturns and provide peace of mind during turbulent economic conditions.

A permanent life insurance policy offering flexbility, guarantees, and the opportunity for dividends is a fixed alternative you may want to consider.


Custom Whole Life is a fixed asset that can:



• Fulfill life insurance needs


• Potentially offset portfolio losses through partial surrenders during years of negative portfolio performance


• Provide tax diversification


When you have a permanent life insurance need, repositioning some of your investable assets to Custom Whole Life is easier and more attractive than ever with the Premium Deposit Account. This account is a simple way to fund a new Custom Whole Life policy with a one-time payment. It lets you prepay up to 14 annual premiums at a discount — by earning interest on your deposit.



Benefits of having Custom Whole Life in a portfolio:



• Permanent, lifetime coverage, paid up with one lump sum with the PDA.


• Fixed asset that helps lower overall portfolio risk3


• Cash value accumulation that can be used to supplement retirement income4


• Opportunity for dividends to help grow cash value and life insurance coverage even more5


• Tax-free loans and surrenders4


Neither New York Life nor its agents offer legal or tax advice, and clients should consult their legal or tax advisors to find out all of the personal tax implications of purchasing life insurance.


1 https://www.nerdwallet.com/blog/investing/average-stock-market-return/


2 https://www.thebalance.com/rolling-index-returns-1973-mid-2009-4061795


3 Insurance in a Portfolio Analysis. Morningstar Investment Management.


4 Accessing the cash value will reduce the total death benefit and total cash value, and loans involve interest payments.


5 Dividends are not guaranteed.


 

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