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Associated Press
14-07-2025
- Business
- Associated Press
Aflac: Is a LIRP a Good Investment?
NEW YORK CITY, NY / ACCESS Newswire / July 14, 2025 / A life insurance retirement plan, or LIRP, is a type of permanent life insurance policy that can help supplement one's retirement savings through the cash value growth growth component builds with each payment and grows tax-deferred at a policy-specific rate. The policyholder can eventually borrow against it or withdraw from it with potential tax advantages, supplementing retirement article covers a few benefits of investing in an LIRP and discusses some common concerns, illustrating how to mitigate these concerns and make an LIRP fit a financial plan. Benefits of LIRPs Here are some key benefits of LIRPs: 1. Financial protection for loved ones The LIRP's death benefit component offers loved ones substantial coverage. If the policyholder passes away, loved ones receive the death benefit, which helps them replace the policyholder's income, liquidate debts, and save for future the cash value component offers an additional savings vehicle the policyholder can use for emergency expenses and other necessary costs while alive. 2. Healthy growth potential LIRPs can offer healthy potential growth, although growth rates can depend on policy instance, whole life insurance offers a lower but fixed and guaranteed interest rate. There is no risk of loss in exchange for lower growth. Conversely, variable life insurance lets the policyholder invest in funds exposed to stocks, bonds, and other securities. This lets investment-savvy policyholders access faster potential growth in exchange for more risk. 3. Tax benefits The LIRP's death benefit is not taxed as income for the beneficiaries. The policy may also be excluded from the policyholder's taxable estate if structured properly in an irrevocable life insurance trust (ILIT), potentially helping the policyholder pass down more wealth tax-free. The cash value can also be a tax-advantaged wealth source. Growth is tax-deferred, and borrowing from the cash value may be tax-free if the policy doesn't lapse. Withdrawals may also be tax-free up to the total premiums paid. Addressing common concerns about LIRPs Some prospective policyholders have concerns about LIRPs. To help people determine if LIRPs are the right choice, here are some of the most common concerns and why they may not be worth the worry: 1. High premiums LIRPs come with high premiums, especially compared to term life insurance they combine lifelong financial protection and tax-advantaged savings into one financial product. This can streamline one's financial management by reducing the number of accounts they must juggle. Furthermore, LIRP premiums vary by the type of LIRP. For example, universal life insurance tends to cost less than whole life insurance in exchange for additional complexity. 2. Policy performance The rate of return is a crucial consideration when saving for retirement. One must balance returns with risk. Higher potential returns tend to bring more risk, while safer investments tend to offer lower types of life insurance exist for different risk tolerances. Whole and universal life insurance offer low returns but guarantee against losses. Variable life insurance provides more potential growth through market investing, but this comes with increased risks. Indexed universal life insurance sits in the middle, offering exposure to market indices. These offer less growth than variable life insurance but tend to have a floor that guarantees against a certain degree of losses. Another aspect to consider is the insurer. Past performance doesn't guarantee future returns, but selecting an insurer with a strong track record can reduce concerns since they have demonstrated competency. Finally, the tax advantages can offset some of the policy performance concerns. Policyholders don't have to pay taxes on their returns in several circumstances, helping them keep more of their policy returns. 3. Policy complexity LIRPs can seem more complex than other plans since they combine permanent life insurance's lifelong financial protection with features of retirement and savings accounts. Policy riders can increase complexity, working with a knowledgeable financial advisor can reduce this issue. The advisor can help the policyholder understand different types of LIRPs and which one best fits their needs. They can also help the policyholder understand the terms and conditions before signing the document, ensuring the policyholder doesn't lock themselves into a suboptimal on the basics of life insurance and LIRPs, such as terminology, can help alleviate some of the complexity worries as well. Are LIRPs worth it? No financial product suits everyone. However, LIRPs combine lifelong financial protection and long-term savings, streamlining certain aspects of one's financial said, LIRPs have high premiums and can be complex. Policyholders also may worry about risk and the tax advantages and variety of LIRP types mitigate some of these concerns. Ultimately, working with a financial advisor can help one determine if an LIRP is right for them and, if so, which option would work best. Aflac does not offer life insurance retirement plans, but we recommend speaking to a tax advisor to point you toward your goals. Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent. Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York. Aflac life plans - A68000 series: Term Life Policies: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68200, A68300 & A68400. In New York, Policies NY68200, NY68300 and NY68400. Whole Life Policies: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368100. In Delaware, Policy A68100. In New York, Policy NYR68100. B60000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Not available in Delaware. Q60000 series/Whole: In Arkansas & Delaware, Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Not available in Virginia. Q60000 series/Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C. Not available in Virginia. Receipt of accelerated death benefits may affect eligibility for public assistance programs. Benefits may also be taxable, and are not expected to receive the same favorable tax treatment as other types of accelerated death benefits that may be available. Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (NAIC 92908). In AR, DE, ID, OK and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Aflac Final Expense policies are not available in New York. Aflac does not offer Universal or Variable Universal life insurance. Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY, VA or VT. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations, and exclusions. Aflac WWHQ | Tier One | 1932 Wynnton Road | Columbus, GA 31999 Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211 Continental American Insurance Company | Columbia, SC Z2500162 Exp. 4/26 CONTACT: Senior PR & Corporate Communications Contact: Angie Blackmar, 706-392-2097 or [email protected] SOURCE: Aflac press release
Malay Mail
25-06-2025
- Business
- Malay Mail
AIA Launches Wealth Generation - Introducing market-first legacy planning options and a short 4-year projected breakeven period Empowering HNW customers to accumulate wealth and achieve seamless legac
Empowering Wealth Growth Projected total breakeven year as short as four years#, with a 10-year projected total IRR of up to 5.05%#, helping customers seize opportunities for steady wealth growth. Guaranteed cash value and non-guaranteed Terminal Dividend1, along with the Terminal Dividend Lock-in Option2, enabling customers to secure potential returns while pursuing long-term financial growth. Policyholders can set up flexible withdrawal instructions starting from the end of the 5th policy year, where they may automatically and regularly withdraw policy values during their specified period for payment to the designated payment recipient, catering to their evolving needs at different life stages. Seamless Legacy Planning Market-first^ Future Guard Option: Through the value-added service, Transitional Owner Arrangement4, policyholder can designate a family member as the contingent owner of the policy and another aged 18 or above family member as the transitional owner of the policy. The transitional owner will oversee the policy with limited administrative rights until the designated contingent owner takes over ownership of the policy upon reaching the date or age as specified by the policyholder. The Future Guard Option also allows the transitional owner to split the policy into two separate policies and to designate another family member as the new contingent owner and insured of the split policy. Ownership of the split policy is transferred when the new contingent owner reaches the specified date or age, ensuring seamless and harmonious wealth succession across generations. Market-first^ Beneficiary Flexi Option: Under specified conditions5, beneficiaries are empowered to flexibly choose their settlement options to receive their share of the unpaid death benefit and accidental death benefit. This ensures a personalised and holistic approach to legacy planning. Market-first^ Health Impairment Option6: In the event that the policyholder suffers from a mental issue or becomes unconscious for a certain period due to a specified illness, the designated recipient7 can receive benefit payment or policy ownership according to the policyholder's instructions. This feature safeguards the financial well-being of loved ones. Remarks ^ Three market-first options: Future Guard Option: As of 7 May 2025, compared with similar services offered by Hong Kong major insurance companies Beneficiary Flexi Option: With the Beneficiary Flexi Option, the policy owner allows the beneficiary to choose to receive the death benefit payment in accordance with the beneficiary's selected settlement option when the beneficiary has attained the designated age chosen by the policy owner or when the beneficiary is diagnosed with a specified illness under Beneficiary Flexi Option. This feature is first-in-market when compared with the savings insurance products provided by Hong Kong major insurance companies, pioneered by AIA with the FlexiAchiever Savings Plan on 8 January 2025. Health Impairment Option: This option allows the policy owner to designate up to 2 different designated recipients and elect for both benefit payment and transfer of ownership at the same time. This feature is first-in-market when compared with the savings insurance products provided by Hong Kong major insurance companies as of 7 May 2025. * Compared with the savings insurance products provided by Hong Kong major insurance companies as of 7 May 2025. # 'Projected total breakeven year' is the policy year at the end of which the projected total surrender value is greater than or equal to the single premium paid for the first time. The projected Total IRR is neither indicative of future performance nor guaranteed. The projected total IRR based on the assumption that no cash withdrawals or policy loans are taken throughout the term of the policy, none of Terminal Dividend Lock-in Option, Flexi Withdrawal Option, Policy Split Option and Health Impairment Incapacity Option is exercised and that all premiums are paid in full when due. The non-guaranteed Terminal Dividend may be declared to the policy at least once per policy year starting from the end of the 3rd policy year. However, AIA Hong Kong may also at its sole discretion declare the Terminal Dividend more frequently than once per policy year, such as on a monthly basis. This option is available once per policy year starting from the end of the 15th policy year, and application for such transfer must be made within 30 days after the end of a policy year. Subject to relevant conditions and withdrawal risks. Transitional Owner Arrangement is only available to designated policies which meet our eligibility requirements. Transitional Owner Arrangement is a value-added service and not a product feature, therefore it does not form part of the policy contract of Wealth Generation. Application is subject to our approval at our discretion. We reserve the right to withdraw the Transitional Owner Arrangement or change its terms and conditions or any related requirements at any time at our sole and absolute discretion. Future Guard Option is one of the service features under the Transitional Owner Arrangement. For details of Transitional Owner Arrangement and Future Guard Option (including but not limited to eligibility, risk and limitation), please refer to the value-added service leaflet of Transitional Owner Arrangement. If the policyholder has chosen the Death Benefit Settlement Option, he/she may also choose the Beneficiary Flexi Option. Upon the beneficiary attaining the designated age chosen by the policyholder or being diagnosed with a specified illness including cancer, stroke, heart attack, terminal illness and kidney failure, such beneficiary can receive his/her share of the unpaid death benefit and accidental death benefit (if any) according to his/her selected settlement option. Starting from the end of the 3rd policy year, if the policyholder is also the insured, he/she may elect for benefit payment and/or ownership transfer to designated recipient(s) under the Health Impairment Option. Subject to relevant conditions and withdrawal risk. The policyholder may designate up to 2 family members aged 18 or above as designated recipients and the applicable designated percentage of policy value for benefit payment and/or ownership transfer. If the policyholder suffers from a mental issue or becomes unconscious for a certain period due to a specified illness including Apallic Syndrome and Coma, the designated recipient may in accordance with the instructions receive a lump sum benefit payment and/or become the new policy owner of the policy. The membership and privileges of AIA Club Alta are subject to terms and conditions. For details, please refer to AIA Club Alta website ( The wealth management privileges of AIA Club Alta are provided by third-party service providers and partners. AIA Hong Kong and its intermediaries do not provide any opinion or advice to customers regarding the relevant services. HONG KONG SAR - Media OutReach Newswire - 25 June 2025 - AIA Hong Kong announced the launch of Wealth Generation ("the Plan"), a bespoke life insurance plan designed exclusively for high-net-worth (HNW) individuals. This Plan enables customers to capitalise on wealth creation opportunities in today's dynamic market while fostering long-term prosperity through strategic legacy planning. The Plan features multiple market-first^ legacy planning options, a rare-in-market* Flexi Withdrawal Option and value-added service, delivering a competitive projected total internal rate of return (IRR). With projected breakeven year as short as four years, this comprehensive solution addresses the dual priorities of HNW customers: wealth accumulation and legacy Alice Liang, Chief Proposition & Healthcare Officer of AIA Hong Kong & Macau, said: "As a global hub for asset and wealth management, Hong Kong has long been a magnet for high-net-worth individuals and families from around the world. Their needs for life insurance products are constantly evolving. They not only seek to navigate complex investment landscape but also place great emphasis on managing their wealth with control, precision, flexibility, and resilience, ensuring seamless wealth transfer."She added: "AIA remains unwavering in our customer-centric approach, consistently delivering innovative products and thoughtful services that go beyond expectations and delight our customers. Wealth Generation exemplifies this commitment, with its market-first legacy planning options, rare Flexi Withdrawal Option and value-added services. This empowers our customers with greater control and flexibility over their wealth accumulation and legacy planning journey, embodying AIA's commitment to helping them achieve Healthier, Longer, Better Lives."Key features and value-added services of the Wealth Generation:Recognising the exacting standards of HNW customers for health and wealth solutions, AIA established AIA Club Alta in 2023 to deliver curated privilegesacross three pillars: health and wellness, wealth management and exquisite lifestyle experiences. These exclusive offerings have empowered customers to strike an optimal balance between health and wealth, enabling them to enjoy a more prosperous and fulfilling life. AIA Club Alta also extends its bespoke wealth management privilegesto include advisory services on tax planning, trusts, legal and family office consultations. When combined with Wealth Generation, these services provide customers with an effective solution, ensuring the mastery of wealth amplification, seamless wealth succession and peace of mind for generations to information above is for reference only and does not constitute any offer and/or insurance product recommendation. The product information in this material does not contain the full terms of the product, for the details of the product features, terms and conditions, exclusions and key product risks, please refer to the product brochure and policy contract of relevant products or visit the AIA Hong Kong's #AIA #友邦 The issuer is solely responsible for the content of this announcement. About AIA Hong Kong & Macau AIA Group Limited established its operations in Hong Kong in 1931. To date, AIA Hong Kong and AIA Macau have over 18,000 financial planners1, as well as an extensive network of independent financial advisors, brokerage and bancassurance partners. We serve over 3.6 million customers2, offering them a wide selection of professional services and products ranging from individual life, group life, accident, medical and health, pension, personal lines insurance to investment-linked assurance schemes with numerous investment options. We are also dedicated to providing superb product solutions to meet the financial needs of high-net-worth customers. 1 as of 31 March 2025 2 Including AIA Hong Kong and AIA Macau's individual life, group insurance and pension customers (as of 31 March 2025)
