Life Insurance

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Portrait of an active senior woman enjoying the benefits of her life insurance policy.

Life Insurance For Retirement

You undoubtedly know what the main, intended purpose of life insurance is: To provide a death benefit to your beneficiaries once you pass away. However, it can do more than just that. Certain types of life insurance products, such as an IUL, can not only provide for your loved ones after you are gone, but actually be utilized as a source of tax-free* income for you while you are still alive.

Collage of mature adults enjoying retirement in Texas while discussing life insurance in retirement.

IULs

An IUL (indexed universal life) insurance policy is not necessarily the right option for everyone… However, it certainly has benefits. If you’ve exhausted your other options, it might be the perfect place to put some additional money you can dip into whenever you need to.

Additionally, there’s the way that taxes work with an IUL. You may want to consider rolling over the money in your retirement accounts like IRAs or 401(k)s into an IUL instead. An IUL does not have a contribution limit, and can be accessed at any time. Additionally, you don’t pay taxes on withdrawals. And, you won’t have to worry about required minimum distributions, or RMDs.

Is Life Insurance For Retirement Right For You

When it comes to retirement, everyone’s situation is different. In order to tell if using life insurance for retirement this way is the right choice for you, we’d need to get in contact with you and analyze your own individual situation and needs.

Benefits

Retirees that use an IUL as part of their retirement strategy receive many benefits, including:

  • Protect your cash value, even in a down market
  • Potential for cash value growth
  • You may be able to lock-in potential interest
  • Potential for tax-free* income
  • Flexibility, to fund all at once, or slowly over time
  • No excess fees for withdrawing money before age 59½

Legacy Benefits

Like any other type of life insurance, an IUL can offer certain benefits as far as what you leave behind is concerned. Benefits that come into play after your passing include:

  • Death benefit may be higher than the premium payments you make
  • Tax-free death benefit
  • No probate court: The money goes directly to who you want to receive it
  • Benefit can be paid over time, or as a lump-sum
  • Death Benefit can increase with time
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