Learn Benefits of IULs
Life Insurance In Retirement
Our team can help you find the best solution tailored to your specific needs. Protecting both your family and money is important.
What Life Insurance In Retirement Can Provide
Your
Life Insurance Goals
Your
Retirement Strategy
Your
Family's Future
You probably have a basic idea of what the main purpose of life insurance is. It provides for your loved ones after you’re gone. However, life insurance in retirement can actually give you much more than just a death benefit. In fact, with an insurance product like an IUL (indexed universal life) policy, you could use it as a means of tax-free* income in retirement. Furthermore, some retirees use these products as a way to protect their assets, while getting a reasonable rate of return.**
Life Insurance Benefits
There are a number of benefits for retirees using an IUL as part of their retirement strategy. Below are several of the benefits that can help you during your retirement, and after you are gone.
IULs and Your
Retirement Strategy
Due to the tax-free* income that an IUL provides, it may be a perfect tool to use in your retirement strategy. Depending upon your individual situation, of course. Remember, an IUL is an insurance policy. This means that the premium (the money you put into it) doesn’t apply to the same tax rules as money invested in, for example, the stock market.
As an example: If you currently have retirement plans, such as traditional IRAs or 401(K)s, you will pay taxes on your withdrawals. And, due to Required Minimum Distribution, once you get to a certain age you have to withdraw some funds and pay those taxes. An IUL may be of interest to you because you could possibly rollover some of the money in these retirement accounts into an IUL policy. By doing this, you could then get the money income tax-free* from your IUL.
Choosing The Right Life Insurance In Retirement
When you’re nearing, or in, retirement, your goals most likely change. Your main objective for your financial vehicles is keeping your money safe. Your life insurance goals may also begin to change. In your earlier years, you probably viewed the main purpose of life insurance as providing for your family after you are gone.
This need may have become secondary in your mind. Of course, maintaining protection for your family is still an important part of your strategy.
However, retirement brings with it additional factors that may impact your overall strategy. For example, tax implications. Choosing the right type of life insurance in retirement is vital. Our team can help you find the best product to help your specific situation. An IUL may be able to help you protect both your money and your loved ones.
Retirement Benefits
Benefits of IULs during your retirement years:
- The cash value of an IUL is protected from market conditions
- IULs provide the ability to lock in the money they accumulate
- The returns are tax-free*
- They accumulate wealth based on a stock market index
- There’s flexibility in terms of how diversified you want your IUL indexes to be
- You can fund it all at once, or over time
- There are no fees or fines for accessing funds before you reach the age of 59 1/2
Legacy Benefits
The legacy benefits of IULs include:
- The immediate death benefit is much greater than the premium paid
- The death benefit can increase over time
- It can be received as a lump sum, or as an income
- The death benefit is income tax-free*
- It also avoids probate, passing directly to beneficiaries
- Insured can potentially accelerate a portion of death benefit for terminal or chronic illness (long term care costs)
Want To Learn More?
Is an IUL the right fit for you? Call us to schedule an appointment or reserve a seat at one of our educational seminars. We can help you discuss life insurance in retirement, and what type could be good for you.