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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.

Life insurance in retirement planning can offer

Income-tax free Death Benefit Income Tax-deferred Cash Value
Income tax advantaged distribution Possibly delay taking Social Security benefits Life insurance policies offer riders and benefits
A life insurance policy’s death benefit is typically income tax-free. A permanent life insurance policy may offer the potential to accumulate tax-deferred cash value. A permanent life insurance policy may offer the option of taking tax-advantaged loans and withdrawals from the policy’s cash value. Accessing withdrawals or loans on a policy as supplemental income could delay taking social security benefits – potentially increasing your monthly payment. Some policies may be able to offer riders and benefits to provide additional protection and flexibility.
additional considerations



Ready to discuss how you can utilize life insurance as a part of your retirement plan? Find an advisor/agent