What Life Product to Use for High Income Earning 34 Yr Old?

[jacobtn]

34 yr old male (DOB 10/1979), income is $500k+ net, wife and 2 children 5 & 8. very healthy, got super preferred rating with ING on a term product last year.

Considering two options-

#1 $2 million Guaranteed IUL (to ultimately pass $1 mil to each of kids one day, tax free) $700 mth with NA) Won't be using the cash value at all, doesn't want to use no lapse guarantee. If he lives to age 100 will only have 25% of DB invested.

#2 ROP term to use for college planning. no growth but will get back payments to use towards tuiton, thinking about a 10 yr term. Not sure which carrier works best in this scenario.

Any suggestions? Of course both may be used. His wife is also perfectly healthy, DOB 1/78 so that is another option as well. Right now she has $250k 20 yr term, he has $3.5 million term with 15 yrs left.

 

[xrac]

34 yr old male (DOB 10/1979), income is $500k+ net, wife and 2 children 5 & 8. very healthy, got super preferred rating with ING on a term product last year.

Considering two options-

#1 $2 million Guaranteed IUL (to ultimately pass $1 mil to each of kids one day, tax free) $700 mth with NA) Won't be using the cash value at all, doesn't want to use no lapse guarantee. If he lives to age 100 will only have 25% of DB invested.

#2 ROP term to use for college planning. no growth but will get back payments to use towards tuiton, thinking about a 10 yr term. Not sure which carrier works best in this scenario.

Any suggestions? Of course both may be used. His wife is also perfectly healthy, DOB 1/78 so that is another option as well. Right now she has $250k 20 yr term, he has $3.5 million term with 15 yrs left.

BNTRS should chime in on this as I consider him to be a resident expert. If this cat is smart I think he will park some of that money into WL with a disability rider. He is definitely someone who should look at disability coverage.

 

[jacobtn]

He has a disability policy but only pays four thousand per month until age 70 w MOO

 

[xrac]

He has a disability policy but only pays four thousand per month until age 70 w MOO

He is way under insured.

 

[BNTRS]

I'm not sure that his income alone drives what he should buy product wise. It's going to depend on what he wants to do/is open to doing.

I personally wouldn't use ROP term for a college planning play (an in all honesty I personally wouldn't use ROP term ever) there are simply too many better options out there.

If he's open to the idea, I'd prefer looking at NA's IUL Builder over the Guaranteed Builder. If he funds it correctly (at or near guideline) he's never going to need to worry about the policy being in trouble, and he'll likely end up with a very decent sum of money (could work excellently for college funding).

Whole life insurance is another option. IUL works just as well. So it's really up to him.

He is potentially woefully under-insured on the disability side. and MoO is an odd choice for someone with this sort of income, but that may be more a function of what he does. He could be one of the highest earning plumbers in the country, at which point his DI coverage makes some sense. If on the other hand he's working in a profession that is better known for compensating at this level (i.e. finance, medicine, law, ect.) then he can get a lot more coverage from a carrier far far better than MoO.