Life Insurance
Life Insurance In Retirement
You most likely have at least a minimal understanding of what life insurance is for. Life insurance is there to care for your loved ones when you are no longer around. However, it may potentially be used for much more than that. For example, one might use an indexed universal life (IUL) insurance policy as a tax-free* income source. An IUL is worth considering, even if it isn’t the ideal choice for everyone. If you’re interested in the idea of using life insurance in retirement as a source of income, reach out to us.
How Life Insurance In Retirement Can Help You
Every retiree’s situation is different. No retirement strategy is “one-size-fits-all.” The best thing to do is consider every option and ultimately choose the ones that are right for you, personally. An IUL offers tax benefits. As an insurance product rather than a standard retirement account, it is subject to different rules. Crucially, you may be able to gradually transfer the money from your retirement account, such as an IRA or 401(k), into an IUL instead. This could allow you to later withdraw that money (and earned interest) tax-free.*
Benefits
Some of the benefits of choosing life insurance in retirement include:
- Market losses do 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*
- You can fund it all at once or over time
- No fines or fees for accessing funds under the age of 59½
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
- The death benefit can potentially increase with time
