David Wiesner, President of Leap
Many fans of the NFL know about a certain play that the Philadelphia Eagles began running since 2022: the “Tush Push”, as it’s called.
In its simplest form, it is a play that is utilized when facing less than one yard for a first down. The Eagles have perfected this play to the point where it is nearly unstoppable. However, this play would not be ideal if they needed five or more yards as that is not what is designed for. It works to near perfection when used at the right time, under the right circumstances, but it doesn’t work under all circumstances.
When I think about permanent insurance and how people perceive this type of financial product regarding retirement, everyone’s first response is usually “I don’t need it” or “it’s an expensive product for a death benefit.” They seem to treat permanent insurance as the “Tush Push” play in football with one use in mind: It only works when I die.
Permanent insurance is more like the option play in football. It provides so many choices to someone before and during retirement. For example, many people do not realize that permanent insurance allows them to have different distribution strategies that will provide them the flexibility to truly enjoy all of the money they’ve worked so hard to accumulate during the accumulation phase of one’s financial life. Retirement, or the “distribution phase” is like the “second half” of the game, and you want to make sure you are ahead on the scoreboard at the end of the 4th quarter, not just the 2nd quarter.
In retirement, cash value can be a source of tax-exempt income to lower the tax bracket one may be forced into. Cash value can be used when their assets have a down year, allowing them to recover the following year. Having permanent insurance acts as a “golden ticket,” providing the option to spend down other assets in retirement, knowing the death benefit is there for legacy value.
As opposed to being a “Tush Push” financial product, permanent insurance acts more like the “option” play in football, allowing multiple options to succeed in the game of life.