Financial experts often recommend that you’ll need about 70% of your current income in retirement. Social Security is a valuable source of retirement income, but it was never intended to replace 100% of a person’s income in retirement. Will you have enough?

Permanent life insurance is a possible solution that offers simultaneous protection against two of the greatest financial risks – dying too soon or living too long. Life insurance could offer that certainty...

• without the requirements of government-sponsored programs,
• without the uncertainty of employer-sponsored plans, and
• without the restrictions and regulations of individual retirement accounts.

“I plan to retire in a couple years…I’ll be 65. Fortunately, I bought a permanent life insurance policy when I was in my forties.” Ron plans to maximize his and his wife's Social Security benefits by delaying benefits beyond their normal retirement ages. In the meantime, he will take withdrawals and loans from the cash value that's built up in his life insurance policy. When he and Monica turn 70, he’ll stop withdrawing from his policy.

Delaying retirement benefits past the normal retirement age enables Ron and Monica to earn credits that increase their benefit. “The very best part of this plan,” says Monica “is that Social Security income is higher if you can wait until you’re 70.”

Ron plans to take loans from his permanent policy’s cash value to supplement his retirement.

Midland National's permanent policies provide several options for accessing the policy's cash value. One option that is particularly useful with retirement planning is our contractually guaranteed Net Zero-Cost Loans, which are available after the policy has been in effect for a number of years. In most cases, these loans become available after five policy years. This type of policy loan charges and credits the same amount of interest, meaning that you pay a net 0% interest on the loan – and you never have to pay back the loan. The loan is simply deducted from the policy’s death benefit, if left unpaid*.

“I wish I could tell you that I was smart enough to come up with this plan myself,” admits Ron, “but it was my agent that really gets the credit. I know I made the right choice with Midland National.”

To experience a financially secure retirement, you need the right plan ...made up of the right ingredients...in the right amounts...and given the right amount of time to grow.

*Although a Net Zero-Cost Loan has a net zero percent interest, you are still charged and billed interest to your loan. Even though you are not required to repay a policy loan, policy loans and withdrawals will reduce your policy’s cash value and death benefit.

Policy loans from life insurance policies generally are not subject to income tax, provided the contract is not a Modified Endowment Contract, as defined by Section 7702A of the Internal Revenue Code. A policy loan or withdrawal from a life insurance policy that is a Modified Endowment Contract is taxable upon receipt to the extent cash value of the contract exceeds premium paid. Policy loans and withdrawals will reduce cash value and death benefit. Policy loans are subject to interest charges. Consult with and rely on your tax advisor or attorney on your specific situation.

07-09-02 Rev. 08/09