Life Insurance for Retirement

You probably have a basic idea of the main purpose of life insurance: provide money to those you love once you are gone. But, life insurance can actually do much more than just a death benefit. This is especially true if your policy is an indexed universal life (IUL) insurance plan. In fact, IULs can provide tax-free* income. Therefore, an IUL may be a good consideration as life insurance for retirement. You can also help protect your wealth with an IUL.

In addition, if you have any money in low-earning CD’s or savings accounts, an IUL might help. In the long run, an IUL may provide a reasonable rate of return. So, using an IUL as life insurance for retirement can be a possible addition to your retirement plan. Also, do you want to leave a legacy? Some retirees consider an IUL for this purpose as well. Tax-free* income for you and tax-free* death benefit to those you leave behind. Those are just two of the reasons you may consider an IUL. In fact, you may be able to transfer cash value from a different type of life insurance, such as whole or universal life plans. Reach out to us to learn the details and find out which options are available for you.

group of seniors with arms around each other laughing life insurance for retirement roseville ca
senior couple having picnic in the park life insurance for retirement roseville ca

*Proceeds from an insurance policy are generally income-tax-free, and if properly structured, may also be free from estate tax. Income-tax-free distributions are achieved by withdrawing to the cost basis (premiums paid), then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value, and reduce the death benefit, or cause the policy to lapse. This assumes the policy qualifies as life insurance and is not a modified endowment contract. The Host and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. This content is not intended to serve as the basis for any investment or purchasing decisions, nor does it recommend or involve the purchase, holding, or sale of a security.  All figures herein are hypothetical and for illustrative purposes only to explain general concepts.  No figure is to be relied upon as being accurate nor a guarantee or projection and is meant only as a partial overview of some relevant features and benefits of general insurance products that may be in the marketplace, and whose availability will be dependent on the State of residence of the consumer, and their individual suitability for the product they are wanting to purchase. Where insurance products are mentioned, any and all guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.

Scroll to Top
cornerstone wealth and tax advisors