The Power of Indexing
(Not a commodity. But a strategy!)
How Would You Like Your Money To Grow?
5 Core Benefits
Contributing funds, using a 7702 Plan grow through indexing, an interest-crediting method that enables account owners to have interest credited based on a portion of the rise of a stock market index, while protecting the funds if there is a drop in the index’s value. Through indexing, your savings has the opportunity for growth and, after interest is credited, is protected from losing value when the stock market index drops.
In addition to the tax-free benefit for beneficiaries, the savings of a 7702 Plan grows tax free and can be accessed tax free as well. You will not usually owe any taxes on funds you access from a properly-structured 7702 Plan through loans, which is the approach being designed.
Your savings is available to you without adjustment based on the outside market. Because many indexing strategies have a floor of 0% interest credited, when the stock market index is down, your credited savings value will not lose value due to the market. Whenever you need to access your funds, you can do so at full value.
Many 7702 Plans include living benefits, which allow an account owner to access a portion of the death benefit while living when certain medical requirements are met. This is to replace your income, if you ever have cancer, stroke, heart attack or you need long-term care. This can be a valuable benefit, as today’s medical expenses in retirement are projected to be hundreds of thousands of dollars.
This gift from the IRS, provides a benefit for your heirs, above and beyond the value of your account. The benefit is delivered tax-free, so your heirs get the full value of their inheritance.
5 Main Advantages
Use after tax dollars
Grows tax-free
If you need to access money for any reason, you can---there are no strings attached or IRS penalties if you do
Using indexing strategies, your money is protected from market loss—you won’t lose a dime of principle due to market dives
With your contributions, you can deposit larger sums and can make up for years that you didn’t put in the maximum
Reserves - Above FDIC Standard Bank Guarantee
If You’re Not Approved, You Can Get A Surrogate And Still Enjoy The Tax Benefits
Tax-Free Income Does Not Increase Your Social Security Taxes
Principle Balance Protection from Negative Returns via indexing!
Never Pay Taxes On Any of the Gain
Income Does Not Affect FAFSA (Free Application for Federal Student Aid)
No Pre – 59 ½ or 73 Age Rule!
Income Does Not Affect AGI (Adjusted Gross Income)
No Money Management Fees
Incontestable and Private
Creditor Protection
Doesn't Have To Go Through Probate
No Contribution or Income Limits
Privacy, Flexibility and Control
Income does not Increase IRMAA (Income-Related Monthly Adjustment Amount)/Medicare premiums
The Ability to Earn Double Digit Returns
Tax-Free Death Benefit to Heirs (An immediate estate)
Three IRS Codes That Make It Possible – 101 (a), 72 (E) and 7702
Tax Equity and Fiscal Responsibility Act of 1982. Minimum Amount of insurance required to qualify for the tax-free status.
Changed to The Deficit Reduction Act 1984
101 (a) is the tax-free death benefit. Where it blossoms over and above the account value, once any loans have been repaid, can be transferred to the beneficiary income tax-free.
72(e) is tax-free accumulation
The Technical and Miscellaneous Revenue Act (TAMRA) of 1988. How fast you can put your money in
Section 7702, permanent life insurance is permitted to provide a source of income in retirement that is not counted as income or taxed as income because this income is considered a loan against the cash value of the policy.
Tax-Deferred
You Don’t Own
1st is Money Manager
2nd is Broker Dealer
3rd is Wall Street
4th is IRS
5th is You
Is Always at Risk
1-3% Money Management Fees
Plus Huge Hidden Fees!
Adds Taxes (Triple Compounding)
Contribution Limits
Tax-Free
Self- Fund or Self-Direct
1st is You
2nd is Your Family and/or Business
Greater Control of Allocation
Greater Control of Income vs 4%
Greater Control of Living Benefits
Greater Control of Inheritance
Your Principal Balance is Always Protected
No Money Management Fees
Earn Stock Market Returns with ZERO RISK!
No Contribution Limits
Tax-Deferred
You Don’t Control
1st is Money Manager
2nd is Broker Dealer
3rd is Wall Street
4th is IRS
5th is You
Is Always at Risk
1-3% Money Management Fees
Plus Huge Hidden Fees!
Adds Taxes (Triple Compounding)
Contribution Limits
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