Life Insurance
Life Insurance For Retirement
You most likely have a basic understanding of life insurance and what it’s for. Life insurance provides for your loved ones after you pass away. However, it could be used for much more than that. For example, you could actually use an indexed universal life (IUL) insurance policy to generate tax-free* income for yourself while you’re still alive. An IUL is worth considering, even if it isn’t the best option for everyone. If you’re interested in the option of using life insurance for retirement income, please reach out to us.
How Life Insurance For Retirement Can Help You
Each retiree’s situation is unique. No retirement strategy is “one-size-fits-all.” The best course of action is to consider all options before deciding which ones are best for you. An IUL provides tax benefits; however, because it is an insurance product rather than a traditional retirement account, it is subject to different rules. Crucially, you may be able to gradually transfer funds from your retirement account, such as an IRA or 401(k), to an IUL instead, if you think an IUL may be a better option for you.
For You & Your Beneficiaries
Benefits
Some of the benefits of selecting life insurance for retirement may include:
- Market losses do not reduce the cash value of your IUL
- Lock in what you accumulate
- Tax-free* growth in cash value
- Access your principal and interest tax-free*
- Fund the policy all at once or over time
- No fines or fees for accessing funds under the age of 59 1/2
And here are some “legacy benefits” that apply to your beneficiaries after you pass away:
- Tax-free* death benefit
- Beneficiaries receive direct payments, no probate court
- Payment to beneficiaries can be received in one lump sum, or in installments
- Death benefit can potentially increase with time