Life Insurance

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.

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Tax-Free* Retirement?

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.

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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
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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.

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Mature couple enjoying themselves at a themepark after setting up life insurance in retirement

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Locations

  • Albuquerque, NM
  • Rio Rancho, NM

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*Proceeds from an insurance policy are generally income-tax-free, and if properly structured, may also be free from estate tax. Income-tax-free distributions are achieved by withdrawing to the cost basis (premiums paid), then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value, and reduce the death benefit, or cause the policy to lapse. This assumes the policy qualifies as life insurance and is not a modified endowment contract. The Host and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. This content is not intended to serve as the basis for any investment or purchasing decisions, nor does it recommend or involve the purchase, holding, or sale of a security. All figures herein are hypothetical and for illustrative purposes only to explain general concepts. No figure is to be relied upon as being accurate nor a guarantee or projection and is meant only as a partial overview of some relevant features and benefits of general insurance products that may be in the marketplace, and whose availability will be dependent on the State of residence of the consumer, and their individual suitability for the product they are wanting to purchase. Where insurance products are mentioned, any and all guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.

IMPORTANT CONSUMER INFORMATION

This site is for informational purposes only and is not intended to be a solicitation for or offering of any product or investment. The offer for sale of an insurance product may only be conducted in a state where the agent is licensed and the product is approved for sale. The providing of investment advice relating to securities may only be done by a properly licensed individual operating through a licensed affiliate entity, unless otherwise exempt. Comments about past performance are not to be construed as a guarantee or assurance of future performance. This website may contain concepts that have legal, accounting and tax implications. We do not provide specific legal or tax advice, nor promote, market or recommend any tax plan or arrangement. Consult a tax/legal professional for guidance with your individual situation. No representations are made as to the accuracy or completeness of the information contained herein or any information contained in any link provided herein, nor does a consumer visiting the web site create an agent-client relationship.

By contacting Innovative Investment Professionals you may be offered information regarding the purchase of insurance products, including fixed index annuities and life.

Securities  offered through World Equity Group, Inc., member FINRA and SIPC, a Registered Investment Adviser.

Innovative Investment Professionals is not owned or controlled by World Equity Group, Inc.

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