Benefits of

Life Insurance

Life Insurance For Retirement

You may have a basic idea of what life insurance does:
Its main purpose is providing for your loved ones when you are gone.

However, life insurance can provide additional benefits for you, while you’re still alive. It makes a good place to keep some of your money, where it’ll be guaranteed* safe. Furthermore, life insurance products don’t apply to the same tax rules as other, more traditional financial vehicles.

For example, you may have a retirement account such as a traditional IRA, or 401(K). With these types of accounts, you pay taxes on your withdrawals. Furthermore, they come with RMDs (required minimum distributions,) which means you’ll have to withdraw funds and pay taxes on them once you reach a certain age. In this case, an insurance policy, such as an indexed universal life (IUL) insurance policy, may be of interest to you. If you “rollover” the money in your account into an IUL, you could potentially take the money income-tax-free* from your IUL policy.

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Indexed Universal Life Insurance For Retirement

If you purchase indexed universal life (IUL) insurance for retirement, it may be a great way to protect some of your money. Additionally, this product may offer better interest rates over time than, say, traditional savings accounts or CDs. And, the money in one of these policies can go to your beneficiaries without going through probate. As we mentioned previously, you may be able to “rollover” the money in another account into an IUL. Contact us: We can talk to you about your options.

Choose the Right Life Insurance

When you’re approaching retirement, your objectives probably start to change. You may be more focused on having an element of safety in your retirement strategy. Luckily, there are products you may not be aware of that can help to do just that. Insurance policies like IULs may serve as a vital part of your strategy. Here are several of the benefits of IUL insurance for retirement:

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Benefits of Life Insurance For Retirement

  • The cash value of an IUL is protected from loss*
  • You can fund it all at once, or over time
  • An IUL gains interest based on a market index
  • Potential tax-free* cash value growth
  • You can access the money tax-free* as well
  • You can lock in what you do accumulate
  • There’s flexibility in how diversified you want your indexes to be
  • There are no fees or fines for accessing money prior to age 59 1/2
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Legacy Benefits Include...

  • The immediate death benefit is much greater than the premium paid
  • The death benefit can also increase over time
  • Death benefit is also income-tax-free*
  • Additionally, it avoids probate court and goes directly to beneficiaries
  • The benefit can be received as a lump sum, or as income
  • The insured can potential accelerate a portion of death benefit, to pay for long-term care costs
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