Skip to content Skip to footer site map

Life insurance in retirement planning

Saving for retirement is one of the most important steps you can take in preparing for your future.  Most people who are actively saving for their retirement years will accumulate the majority of their assets in traditional retirement accounts such as IRAs, 403(b)s, 401(k)s or annuities; which are tax-deferred but the income becomes taxable upon withdrawal.  This may present a challenge for some investors because  of the impact that taxes could have on decreasing  the wealth that you have worked hard to accumulate. 


By utilizing a permanent life insurance policy as part of your retirement plan;  the cash value that can build-up on the policy can be used as a source of supplemental income during your retirement years. If you are concerned about diversifying your future tax liability, then incorporating a permanent life insurance policy into your retirement plan (LIRP) may be an option to consider. 




happy couple enjoying cups of coffee in front of sunny window
What is life insurance? Think of it as a contract involving three parties – an insured person, a life insurance provider and a beneficiary. When the insured person dies, the contract stipulates that, following the filing of a death claim, the life insurance provider pays a sum of money to the beneficiary or beneficiaries. But the impact of life insurance is far-reaching. It can make all the difference to your loved ones by enabling them to enjoy the lifestyle you planned for them, even when you’re no longer here.
Life insurance can be used to cover burial expenses, pay the mortgage, fund your child’s education, and provide a nest egg for your family or favorite charity. Permanent life insurance can help you accumulate cash value on a tax-deferred basis to supplement your retirement savings.

Life insurance in retirement planning can offer


Ready to take the next step? Find an advisor/agent