Defined Benefit Life Reinvents Life Insurance as A Tax-Advantaged Supplement

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Death and taxes. Those used to be the only two certainties for any individual’s retirement. Defined Benefit Life™, a new offering from Wealth2K, is changing that. It offers retirees a predetermined, tax-free income through a life insurance policy.

“When an insured person dies, the insurance company pays money to the insured’s beneficiaries. It is called the death benefit. Beneficiaries receive money that is many times larger than the premium paid. Regardless of how much they have paid in premium, the money received is still income tax free,” said David Macchia, RMA, CBBP and Wealth2K Founder. “With Defined Benefit Life, you predetermine an income from your life insurance policy, also tax-free. It essentially gives you the tools to set up your personal version of a defined benefit “pension.”

To acquire Defined Benefit Life, an individual applies for life insurance in the traditional manner. Then, the applicant defines: the amount of desired retirement income; the number of years premiums are to be paid into the policy; the number of years the retirement income will be received; and a baseline interest rate that the policy is expected to earn between the time of application and retirement.

Mimicking the economic methodology of Defined Benefit Pensions, Defined Benefit Life annually monitors the performance of the life insurance policy, notifying the policy owner of any premium adjustments required to keep the policy on track to pay the targeted retirement income.

“Should the interest rate of the policy underperform or overperform the predetermined interest rate (e.g., a return of 5 percent instead of 6 percent), the insured person can make an adjustment to the payout or the premium,” said Macchia. “The frequency of policy monitoring is key. When premium adjustments are made on an annual basis, they tend to be modest.”

The end result is the creation of a personally owned, private, tax advantaged solution for retirement security and an income that can be counted on as being there at retirement.

“In the staid business of life insurance, this is nothing less than a revolutionary innovation,” said Macchia. “When you consider one of the few things Republicans and Democrats CAN agree on right now is that America suffers from a retirement security crisis, Defined Benefit Life offers a viable solution.”

Defined Life Benefit is only available through licensed life insurance professionals who may introduce Defined Benefit Life into their practices by becoming licensed with Wealth2k® or with certain participating FMO organizations. Agents will also subscribe to a suite of marketing and client education tools, including a customized, AI-driven, marketing-focused website that enables the insurance professional to leverage technology that conveys the value proposition of Defined Benefit Life online.

For complete information on Defined Benefit Life and the innovative marketing tools supporting it, visit https://www.ailifeinsuranceassistant.com/ To set up a demo, call or email David Macchia at dm@wealth2k.com or (781) 989-5200 ext. 201.

About Wealth2K/David Macchia, RMA, CBBP:

Wealth2K Founder David Macchia is an entrepreneur, author, thought leader, public speaker and marketing content expert focused on developing communications and technology solutions for retirement income distribution planning. In 2000, he founded Wealth2K, the nation’s leading provider of advisor-centric income planning solutions. He is the creative force behind the popular, Income for Life Model®, as well as Women & Income®, the first retirement income solution developed expressly for “boomer” women.

David is no stranger to the life insurance business. In 1986, he developed the first universal life private pension. What followed was a life insurance sales tsunami that has continued to the present day. His latest creation, Defined Benefit Life, builds upon his earlier work to thrust life insurance into an entirely new level of value for consumers.