Life Insurance in Retirement
Choosing the right life insurance in retirement is important. You might think that the only thing it provides is a death benefit. However, with the right one, you may be able to gain certain benefits while you’re still alive. In fact, you may be able to retire tax-free* with the right life insurance policy.
Insurance products don’t apply to the same rules as traditional retirement accounts. This may grant you a lot of flexibility. One of the best benefits? The fact that you may be able to use life insurance to retire tax-free.* Interested in learning more? Reach out to us.
One example of how a life insurance product might be able to help you? An IUL. An IUL (indexed universal life) insurance policy may be used as a safe place to keep some of your money. This money can then be taken out instead of having to dip into your other retirement accounts.
Learn About your Options
Types of Life Insurance
There are several different types of life insurance to choose from and each comes with different rules. For example, term life insurance only pays a death benefit if you pass away during the term laid out. However, it holds no additional value. Max-funded cash value life insurance, meanwhile, may allow you to remove money from the cash value created. And, you can withdraw it tax-free* because the cash value is technically just an overpayment of life insurance.
IULs are another category of life insurance products. An IUL can provide you with more flexibility, and more benefits than a whole or term life insurance policy could.
How Life Insurance Can Help You in Retirement
An IUL is not necessarily the right option for all retirees. No product is “one-size-fits-all.” However, an IUL is worth considering if any of the following things apply to you:
- You have maxed out your 401(k), IRA, or other retirement plan account
- Income security is important to you
- You are interested in tax-deferred or tax-free* retirement strategies
- You like the idea of being able to withdraw money whenever you need to
- The income amount needed is less than your life insurance’s “cost basis”
- You may be a parent of a special needs adult child and want income for your child
Help Us Help You
We’re committed to ensuring our clients are educated on all their options for retirement. Register to attend one of our informational seminar events. Or, you could contact us to schedule a one-on-one meeting. We can make recommendations that may help you improve your retirement strategy.