Using Life Insurance for Your Client's Smart Money

Help Your Clients Gain Death Benefit Protection with Cash Value Access


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Smart money is money your clients want to control and be able to access during times of need. While there are several options for where to keep this smart money, one that's often overlooked is permanent life insurance.

With the smart money concept using permanent life insurance, your clients gain three powerful benefits:

  • Death benefit protection: The generally income tax-free proceeds could help a family continue, or the funds may be used to pass on a legacy.1
  • Cash value growth: Your clients have an opportunity to build cash value for financial needs down the road.
  • Access to funds: Life insurance offers potential cash surrender value that is available for unexpected or immediate needs. Funds may be taken as loans or withdrawals for any reason.2 Plus, additional design elements may include the ability to accelerate the death benefit if your client is diagnosed with a qualifying illness.3

Be sure to conduct a thorough needs-based analysis and determine if death-benefit coverage is necessary before proceeding.


For more information about using life insurance for your client's smart money, contact Sales Development today at 800-800-3656 ext. 10411 or email


1 Neither North American Company nor its agents give tax advice. Please advise your customers to consult with and rely on a qualified legal or tax advisor before entering into or paying additional premiums with respect to such arrangements.

2 In some situations loans and withdrawals may be subject to federal taxes. North American Company does not give tax or legal advice. Clients should be instructed to consult with and rely on their own tax advisor or attorney for advice on their specific situation. Income and growth on accumulated cash values is generally taxable only upon withdrawal. Adverse tax consequences may result if withdrawals exceed premiums paid into the policy. Withdrawals or surrenders made during a Surrender Charge period will be subject to surrender charges and may reduce the ultimate death benefit and cash value. Surrender charges vary by product, issue age, sex, underwriting class, and policy year.

3 Subject to eligibility requirements. Availability varies by state and product. For full details, see our Accelerated Death Benefit Endorsement Guide. Since benefits are paid prior to death, a discount will be applied to the death benefit accelerated. The death benefit will be reduced by the amount of the death benefit accelerated. As a result, the actual amount received will be less than the amount of the death benefit accelerated. There is an administrative fee at the time of an election.

Agents offering, marketing, or selling accelerated death benefits for chronic illness in California must be able to describe the differences between benefits provided under an accelerated death benefit for chronic illness and benefits provided under longā€term care insurance to clients. You must provide clients with the ADBE Consumer Brochure for California that includes this comparison. Comparison is for solicitation purpose only, not for conversions.



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