JCC Legacy
Illustrative Scenarios

Case Studies

Illustrative examples of how our strategies have been structured for various client situations across all of our service offerings.

Important: These case studies are hypothetical illustrations for educational purposes only. Actual results will vary. Values shown are not guaranteed. Past performance does not guarantee future results.

Executive Bonus Plans

Reward and retain key employees with tax-advantaged benefits

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Case Study 1

Owner + 2 Key Employees

Manufacturing company owner wanted to reward herself and two key managers.

Plan Structure
Participants
Owner (age 48) + 2 managers (ages 42, 45)
Annual Bonus
$50,000 per participant
Vesting
5-year graded vesting (20% per year)
Duration
15-year funding period illustrated
Illustrated Results*
Total Premiums
$2,250,000 over 15 years
Projected Cash Value
$3.1M – $4.2M at year 20
Death Benefit
$5.5M combined initial face amount
Tax Deductions
Full deduction of bonuses as compensation

Note: With gross-up, actual business cost was approximately $75,000 per participant annually. Cash values and death benefits shown are illustrative and not guaranteed.

Case Study 2

Solo Owner Supplemental Retirement

Dental practice owner seeking additional tax-advantaged retirement savings beyond 401(k).

Plan Structure
Participants
Owner (age 52)
Annual Bonus
$100,000
Vesting
N/A (self-employed)
Duration
12-year funding, retire at 65
Illustrated Results*
Total Premiums
$1,200,000
Projected Cash Value
$1.4M – $1.9M at age 65
Projected Income
$80K – $120K annual tax-free loans for 20 years
Death Benefit
$2.5M face amount

Note: Designed as maximum-funded policy to optimize cash accumulation. Illustrated loan distributions assume policy remains in force. Results not guaranteed.

Case Study 3

Key-Person Retention with Vesting

Tech company wanted to retain a critical developer with a restricted executive bonus.

Plan Structure
Participants
Lead developer (age 35)
Annual Bonus
$30,000
Vesting
7-year cliff vesting
Duration
20+ year accumulation period
Illustrated Results*
Total Premiums
$600,000 over 20 years
Projected Cash Value
$950K – $1.4M at year 20
Death Benefit
$1.5M face amount
Retention Value
Employee forfeits unvested amounts if departure before year 7

Note: Restrictive endorsement filed with carrier. Employee understands policy becomes fully portable after vesting. Values illustrated, not guaranteed.

Private Reserve Strategy (IUL)

Combine mortgage protection with wealth accumulation

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Case Study 1

Young Family with $3,500 Mortgage

Couple in their 30s wanted to protect their home while building tax-free wealth.

Plan Structure
Participants
Husband (age 34), primary earner
Monthly Contribution
$4,500 ($1,000 savings + $3,500 mortgage)
Mortgage Balance
$450,000 remaining
Duration
25-year mortgage remaining
Illustrated Results*
Total Contributions
$1,350,000 over 25 years
Projected Cash Value
$1.8M – $2.4M at year 25
Death Benefit
$1.2M (can pay off mortgage + leave legacy)
Critical Illness Benefit
Up to $1.08M accelerated benefit if critically ill

Note: Family continues making normal mortgage payments while routing through the IUL. If no illness occurs, accumulated cash becomes tax-free retirement income. Values illustrated, not guaranteed.

Case Study 2

High-Income Professional

Physician with $5,000/month mortgage seeking asset protection and retirement supplement.

Plan Structure
Participants
Physician (age 42)
Monthly Contribution
$7,000 ($2,000 savings + $5,000 mortgage)
Mortgage Balance
$750,000 remaining
Duration
20-year mortgage remaining
Illustrated Results*
Total Contributions
$1,680,000 over 20 years
Projected Cash Value
$2.1M – $2.8M at year 20
Death Benefit
$1.5M face amount
Tax-Free Income
$120K – $160K annually in retirement

Note: Strategy provides mortgage protection, disability coverage via accelerated benefits, and supplemental retirement income. All values are illustrative projections.

Rollover / 1035 Exchange

Optimize dormant retirement accounts and underperforming policies

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Case Study 1

401(k) Rollover After Career Change

Former corporate executive left employer with dormant 401(k) seeking better control.

Plan Structure
Participants
Executive (age 55)
Rollover Amount
$650,000 from employer 401(k)
Previous Returns
Averaging 4–5% in target-date fund
Situation
Left company after 22 years, funds sitting idle
Illustrated Results*
New Structure
Fixed indexed annuity with income rider
Guaranteed Income
$42K – $48K annually starting at 65
Principal Protection
100% principal protected from market loss
Death Benefit
Remaining balance passes to beneficiaries

Note: Rollover completed tax-free. New structure provides guaranteed income floor with upside potential. Client gained peace of mind and predictable retirement income.

Case Study 2

1035 Exchange from Underperforming Annuity

Retiree stuck in high-fee variable annuity with poor performance.

Plan Structure
Participants
Retiree (age 62)
Exchange Amount
$425,000 from old variable annuity
Previous Fees
2.8% annual fees eating into returns
Situation
Lost 18% in 2022, frustrated with volatility
Illustrated Results*
New Structure
Fixed indexed annuity with 0% floor
Fee Reduction
From 2.8% to 0.95% annually
Projected Growth
$520K – $580K at age 72
Income Option
$38K – $44K guaranteed annually if elected

Note: 1035 exchange preserved tax-deferred status with no taxable event. Lower fees and downside protection addressed client's concerns.

Case Study 3

Pension Buyout Optimization

Teacher offered lump-sum pension buyout before retirement.

Plan Structure
Participants
Teacher (age 58)
Pension Offer
$380,000 lump sum vs $2,200/month pension
Concern
Pension has no survivor benefit for spouse
Goal
Protect spouse while maintaining income
Illustrated Results*
Strategy
Took lump sum, purchased immediate annuity with survivor benefit
Monthly Income
$2,050/month (joint life with 100% survivor)
Spouse Protection
Spouse receives full income if teacher passes first
Remaining Funds
$80,000 placed in liquid savings

Note: By taking lump sum and restructuring, client gained spousal protection worth approximately $400,000 in present value.

Private Crediting IUL (Proprietary)

Maximum accumulation with early liquidity access

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Case Study 1

Business Owner Seeking Maximum Accumulation

Successful entrepreneur wanted aggressive cash value growth with early access.

Plan Structure
Participants
Business owner (age 38)
Annual Premium
$150,000
Funding Period
10 years
Goal
Create tax-free capital pool accessible within 1–2 years
Illustrated Results*
Total Premiums
$1,500,000 over 10 years
Year-1 Cash Value
$142,000 (vs ~$95,000 in traditional IUL)
Year-10 Cash Value
$1.7M – $2.1M projected
Cost Savings
50% reduction in cost of insurance

Note: Private crediting structure allowed early liquidity for business opportunities. Client accessed $200,000 in year 3 for real estate investment, then repaid policy.

Case Study 2

High Net Worth Individual

Investment banker wanted IUL but needed faster liquidity than traditional policies offer.

Plan Structure
Participants
Investment banker (age 45)
Annual Premium
$250,000
Funding Period
7 years
Situation
Traditional IUL required 3+ years for meaningful cash access
Illustrated Results*
Total Premiums
$1,750,000 over 7 years
Year-1 Liquidity
$235,000 accessible (vs ~$160,000 traditional)
Year-7 Cash Value
$2.0M – $2.5M projected
Death Benefit
$4.5M face amount

Note: Private crediting reduced friction costs significantly. Client views policy as liquid emergency fund and tax-free retirement vehicle.

College Fund / Million Dollar Baby

Flexible education funding that grows with your child

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Case Study 1

Newborn Million Dollar Baby Fund

Parents started policy at birth to fund college and beyond.

Plan Structure
Participants
Newborn (age 0), parents own policy
Monthly Premium
$500/month
Funding Period
18 years until college
Goal
College fund with flexibility for other life milestones
Illustrated Results*
Total Premiums
$108,000 over 18 years
Projected Cash Value
$145,000 – $175,000 at age 18
College Funding
4 years of $30K – $40K tax-free withdrawals
Remaining Value
$50,000+ for first home, car, or continued growth

Note: Not counted as student asset on FAFSA. If child receives scholarship, funds can be used for car, apartment, or wedding. Death benefit protects family throughout.

Case Study 2

Grandparent Legacy Gift

Grandparents wanted to fund grandchild's education without affecting financial aid.

Plan Structure
Participants
Grandchild (age 5), grandparents own policy
Single Premium
$100,000 lump sum
Funding Period
13 years until college
Goal
Tax-efficient wealth transfer with education focus
Illustrated Results*
Initial Premium
$100,000
Projected at Age 18
$165,000 – $200,000 cash value
Death Benefit
$250,000 (protects grandchild)
Flexibility
Can fund college, trade school, business, or first home

Note: Grandparents maintain control of policy. Gift does not count toward grandchild's assets for FAFSA. If education not needed, policy can continue growing.

Case Study 3

Teenager College Catch-Up

Parents of 12-year-old wanted college funding with more flexibility than 529.

Plan Structure
Participants
Child (age 12)
Monthly Premium
$1,000/month
Funding Period
6 years until college
Situation
Already maxing 529, wanted additional tax-advantaged option
Illustrated Results*
Total Premiums
$72,000 over 6 years
Projected at Age 18
$78,000 – $88,000 cash value
Usage
Supplement 529 for room, board, travel, or living expenses
If Not Needed
Continue policy for child's future tax-free retirement income

Note: IUL provided flexibility 529 could not — funds can be used for anything without penalty. If child doesn't attend college, no tax penalty unlike 529 for non-education use.

Single Premium Annuities

Lump-sum growth with downside protection

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Case Study 1

Pre-Retiree Repositioning a Maturing CD

Saver rolling a maturing $250K CD into a more productive vehicle.

Plan Structure
Participants
Pre-retiree (age 60)
Single Premium
$250,000
Structure
5-year MYGA
Goal
Outpace CD rates with tax-deferred growth
Illustrated Results*
Guaranteed Rate
Locked rate for full 5-year term
Tax Treatment
Tax-deferred until withdrawal
End of Term Value
Projected ~$305K – $320K
Options at Maturity
Renew, 1035, annuitize, or withdraw

Note: MYGA functions like a tax-deferred CD. Surrender charges apply during the rate-lock period. Guarantees backed by issuing carrier.

Case Study 2

Retiree Seeking Guaranteed Lifetime Income

Retiree wanted to convert savings into predictable, lifelong cash flow.

Plan Structure
Participants
Retiree (age 67)
Single Premium
$400,000
Structure
Fixed indexed annuity with lifetime income rider
Goal
Cover essential expenses for life
Illustrated Results*
Lifetime Income
~$24K – $28K guaranteed annually starting immediately
Principal Protection
0% floor — no market losses
Growth Potential
Index-linked credits above guarantees
Legacy
Remaining account value passes to beneficiaries

Note: Guaranteed income amounts depend on carrier, age, and rider election at issue. Withdrawals beyond rider amount can reduce future income.

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