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Retirement

Most Americans have the expectation that when they retire, they will be able to kick back, relax and enjoy the "good life." They dream of traveling first class and walking on the tropical beaches of the world. They dream of eating in the finest restaurants and driving nice cars. They dream of being able to play an afternoon game of golf or tennis whenever the notion hits them. Is this not what they deserve after a lifetime of hard work? Our clients all deserve to live life to its fullest both now and in the future. FREEDOMFLEX® can help make those dreams come true.

Another dream our clients have is to give their children a college education. Did you know that financial experts tell us that a child born today will need well over $80,000* for a four year college education in a public college, and a staggering $250,000* or more in a private college? By utilizing our Association’s Higher Education Program as well as FREEDOMFLEX® you can achieve this dream.


The Problem Isn’t Earning the Money... ...It’s Keeping It!

  • The average retired worker receives $922 per month from Social Security!
    Could you live on $922 per month? (1)

  • 7 out of 10 workers over the age of 65 do not have any pension plan coverage! (2)

  • 51.3% of persons over age 65 earn less than $15,000 per year! (3)

  • 3.65 million senior citizens live below the Federal poverty level! (4)

  • The purchasing power of the dollar, as measured by consumer prices, lost 72%
    of its value from 1976 to 2006! (5)

How it works

In the First Year
The premium payments are transferred from either a checking account, savings account, or paycheck to an FDIC insured custodial account. ISM Administrators, a licensed and bonded premium administrator, sends it on to a major Life Insurance Company to purchase a Modified Premium Term To Age 100 Life Insurance Certificate/Policy. Part of the premium is allocated to the term life insurance and optional disability benefit portion of the certificate/policy. The remaining first year additional premium is allocated to the endowment portion of the certificate/policy and matures in 10 years. At the end of 10 years, this additional premium will be returned to the client at about 260% of its original value, provided they do not cancel the plan before the initial 10 years are up.


Starting in the Second Year
Part of the payment is still allocated as the required premium for the term life insurance and optional disability benefit. The remaining premium now goes to work for the client in their choice of cash accumulation vehicles. Having a choice gives the client control. The client's automatic cash accumulation vehicle is a flexible premium deferred annuity. Their optional cash accumulation vehicle can be, for example, a no load mutual fund of their choice, in which case the investment company that they choose provides them with a prospectus, application, and full information at that time. Either way, 100% of the non-life insurance premium dollars goes to work for the client since there are no commissions going into someone’s pocket. The client may increase their cash accumulation payments at any time.

At the End of 10 Years
The client now has the flexibility to determine what is best for them. They may stop their payments entirely or continue them for as long as they wish. Depending on their needs the insurance coverage may be renewed for another 10 years, cancelled, or continued as decreasing term insurance until age 100. Payments to their cash accumulation vehicle are also flexible. They may stop them after 10 years or continue as long as they wish.
 

*College Board Annual Survey of Colleges, 2005-2006
1 (U.S. Social Security Administration – Statistical Abstract of the United States, 2003)
2 (U.S. Department of Health and Human Services, 2003)
3 (Administartion on Aging, 2003)
4 (U.S. Department of Health and Human Services, 2003)
5 (U.S. Bureau of Labor Statistics – Statistical Abstract of the United States, 2006)

FREEDOMFLEX® is marketed exclusively by agents through Interstate Specialty Marketing, Inc.
17722 Irvine Boulevard - Tustin, California 92780 - 1-800-488-1474 - www.americanassociations.org

Products and services marketed through Interstate Specialty Marketing, Inc. and the American Associations of Government and Private Employees are not related to any other products or services referenced in this website.

FREEDOMFLEX® is a benefit of the American Associations of Government and Private Employees, and is offered exclusively to Association members.
www.americanassociations.org