Casey’s Quandary: How Planning Saved the Day

Casey was a successful salesperson in the electrical components industry. He sold the intricate parts that kept machines running, and life seemed to hum along just as smoothly. Summers were spent on idyllic islands along the southern New England coast, a well-earned reward for his hard work. His company, headquartered in northern New England, valued him, and Casey got along well with his colleagues.

But life threw a curveball.

The company was sold unexpectedly, and the new owners decided not to renew Casey’s contract. At 52 years old, Casey suddenly found himself out of work. While he received severance pay and had a solid 401(k), he couldn’t access it without steep penalties. His car was paid off, and he had a seasonal rental that would keep him sheltered until April, but his financial future felt precarious.

Enter Chris, Casey’s longtime friend and insurance advisor. Over coffee, Casey expressed his worries about covering his bills and finding a new job. That’s when Chris reminded him of a critical decision Casey made years ago: a IUL premium life insurance policy.

Casey vaguely remembered the policy but had no idea how much it had grown. Chris broke it down:
   •   Casey had been contributing $36,000 annually for 22 years.
   •   The policy had accumulated a cash value of $900,000.
   •   More importantly, the policy was earning 6% annual interest, giving Casey the option to withdraw $54,000 per year, tax-free.

Casey was stunned. “You mean I can take out $54,000 without touching the $900,000 principal?”

“Exactly,” Chris explained. “The $54,000 is just the interest your policy earns. Even better, you’ll continue earning interest on the full $900,000—even as you withdraw.”

Casey was skeptical. “No penalties? No hidden fees?”

Chris reassured him. “No penalties. This isn’t like a 401(k). You can access your funds at any age because it’s an insurance policy. If you need to borrow against it, the loan interest is typically between 3–5%. Since your policy earns 6%, you’d still net a positive return—even while using the money.”

With Chris’s guidance, Casey decided to withdraw $4,500 a month. His car was paid off, his rental was secured, and now he had a steady, tax-free income stream to cover his expenses while he searched for a new job.

For the first time in months, Casey felt relief. He enjoyed the holidays, participated in family gatherings, and even bought thoughtful gifts without worrying about his finances. By spring, he was back on his feet, re-entering the workforce with confidence.

The Moral of Casey’s Story

Planning today can safeguard your tomorrow.

Casey’s foresight in diversifying his financial strategy—investing in a single premium life insurance policy alongside his 401(k)—gave him options when life took an unexpected turn. His policy didn’t just act as a retirement tool; it became a safety net in times of uncertainty.

Why This Matters to You

A properly structured life insurance policy can:
   •   Provide tax-free income.
   •   Allow penalty-free access to funds at any age.
   •   Grow steadily, even as you withdraw.

Whether you’re navigating a career change like Casey or planning for retirement, the right financial tools can make all the difference.

Are you ready to secure your financial future? Explore your options today.