SERVICES
Life Insurance
Life Insurance In Retirement
You likely have a basic knowledge of what life insurance is for. Life insurance provides for the needs of your loved ones after you pass away. However, it might be utilized for much more than that. For example, one could employ an indexed universal life (IUL) insurance policy to generate tax-free* income. An IUL is worth considering, even if it may not be the best option for everyone.
If you're interested in using life insurance to supplement your retirement income, please don't hesitate to contact us.
How Life Insurance In 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 explore all possible options before deciding which ones are ideal for you. An IUL provides tax benefits, but because it is an insurance product rather than a traditional retirement plan, it is subject to the same rules. Crucially, you may be able to progressively move funds from your retirement account, such as an IRA or 401(k), to an IUL instead. This may allow you to withdraw the money (and any earned interest) tax-free later.*
Benefits
Some of the benefits that come with life insurance in retirement include:
- Market losses will not reduce the cash value of your IUL
- The ability to lock in what you accumulate
- Tax-free* growth in cash value
- Access to both principal and interest tax-free*
- Fund it all at once, or over time
- No fines or fees for accessing funds before the age of 59 1/2
And here are some “legacy benefits” that apply to your beneficiaries:
- Tax-free* death benefit
- Your beneficiaries receive direct payments, avoiding probate court
- Payment to beneficiaries can be received in one lump sum or in installments
- The death benefit can potentially increase with time
