LIRP - Life Insurance as Retirement Plan / Savings / Investment - Walker v LSW

  • IUL as Retirement Income
    • Q Would you agree that a policyholder can use an IUL policy through the use of loans and withdrawals to obtain tax-free retirement income?
    • A I do.
    • Q Is that fair to say?
    • A It's one of the reasons, yes.
    • Q One of the principal reasons was what you said in your deposition; right?
    • A Sure. A cash value life insurance, one of the principal reasons.

--  MacGowan - Snippets - DOC 810 - Trial Transcript - Day 7 - Walker v LSW - 260p

  • Matthew DeSantos - LSW’s Senior Vice-President of Distribution and Business Development (himself a former insurance agent) - DOC 792 p27>
  • (p97) - Interest Rates
    • A We know and your client should also be aware that over long periods of time, both interest rates and other factors change.
      • The illustration represents an estimate based upon what we know now, but actual results may be worse or better than those illustrated.
    • Q Is the fact that interest rates change over time a
      secret that LSW holds?
    • A No.
  • (p113) - Tax-Free Retirement
    • Q Are you at all concealing or concerned about the fact that the company offers as one of the features of the IUL product the fact that it could be used for tax-free retirement?
    • A No. All six companies I have worked at use the same approach to permanent life insurance and the tax advantage values and benefits that you're able to gain from it, you know, assuming things are structured the way to allow you to do that.
  • (p115) - Exhibit 835 - Marketing Brochure
    • Q And then the second paragraph says: In addition to a death benefit, indexed universal life insurance also offers the potential to build cash value on a tax-deferred basis which may be accessed income-tax free during your lifetime through withdrawals and loans. Is that what it says?
    • A Yes.
    • Q So is it fair to say it's no secret that the company markets this product for, among other things, the tax-free retirement potential?
    • A Yes.

--  2014 0423 – DOC 812 – Trial Transcript – Day 10 – Walker v LSW – 194p  ---  [BonkNote]

  • (p73) - Spooner
    • A They went through this series of showing us all the traditional retirement accounts and then presented this
      private retirement account notion where you could take the equity in your home or your property and use it to set up these accounts where you could take tax-free retirement income later in your retirement years.
  • (p74-75) - Spooner
    • Q And what were you looking for in a retirement plan?
    • A Well, we wanted something that was relatively safe and secure since we were getting a little bit older and didn't want to make any big mistakes that we couldn't make up for. 
  • Q And Exhibit 632, the total wealth management/wealth  transformation strategy, is that the plan that was presented to you?
  • A Yes, it is.

--  2014 0415 – DOC 808 – Trial Transcript – Walker v LSW – 229p  ---  [BonkNote]

  • (p13) - Matthew DeSantos - LSW’s Senior Vice-President of Distribution and Business Development (himself a former insurance agent) - DOC 792 - p27
    • Q We were talking yesterday about the ability to use the Provider and Paragon products as supplemental retirement income sources. Do you remember that?
    • A Yes -- one of the benefits of life insurance.
    • Q And you testified that LSW refers to the Provider and Paragon products as providing supplemental retirement income normally in those types of marketing pieces; correct?
    • A We do have marketing pieces that refer to the ability to be supplemental retirement income, yes.
  • (p15-16)
    • A It is not the marketing strategy. It is a marketing strategy. That's a nuance that's an important one to us.
    • Q So the important nuance is that it is a marketing strategy, not the marketing strategy? That's your testimony?

--  2014 0423 – DOC 812 – Trial Transcript - Day 10 – Walker v LSW – 194p  ---  [BonkNote]