Protect Your Future
Life Insurance Retirement Plan
Is It Right for You?
More than just a death benefit
Life Insurance Retirement Plan
Should you have a life insurance retirement plan? That depends on your goals. Life insurance is one way that retirees can ensure those they love are taken care, no matter what happens to them. However, having a life insurance retirement plan means more than just a death benefit. For instance, an indexed universal life (IUL) plan offers a way to earn tax-free* income during retirement. Also, an IUL may provide asset protection. Many types of permanent life insurance plans may be available for you to help reach your retirement goals.
IULs may also provide a return on your money. In some cases, the rates you get with an IUL are higher than what you might get in a CD or savings account. So, you still get a secure place for your assets but could see a better gain. Each insurance and investment has its own set of rules, of course. At Cornerstone Wealth & Tax Advisory Group, we make sure to tailor our solutions to your needs. A life insurance retirement plan is sometimes helpful with a long-term strategy.
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Retirement and Life Insurance
Could life insurance play a bigger role in your retirement plan? Unlike a 401(k) or traditional IRA, an IUL operates under different tax rules. The money you access from an IUL is not subject to income tax — and there are no required minimum distributions (RMDs) forcing you to withdraw funds on a set schedule. With a 401(k) or IRA, missing your RMD deadline can mean a significant tax penalty. Some retirees choose to roll retirement savings into an IUL over time specifically to avoid this burden and keep more of their money.
What an IUL Can Do for You
As you reach or enter retirement, your need for security may increase. Also, your life insurance needs could change as well. When you’re in working years, life insurance needs to provide certain protections. However, in retirement, benefits such as tax-free* income may become more important. Keep in mind, some insurance policies may be able to convert to an IUL or other plan. Be sure to contact us to find out which options are right for you.
Cornerstone Wealth & Tax Advisory Group takes the time to meet with clients and understand their needs. When it comes to a life insurance retirement plan, we can go over the details and answer questions about this approach. In addition, we believe that retirement planning and protection go hand-in-hand. Let’s get together to make a plan that’s right for you.
Here are some reasons you may consider an IUL in retirement:
- Even in a down market, your cash is protected
- IULs do not link to the stock market; instead, it uses an index
- Potential gains can be fixed
- You can choose from multiple indexes
- Income, tax-free*
- Tax-free withdrawals
- Flexibility in how you get your money
- Not dependent upon your age
- Death benefit with no income tax
- No probate court required
- Potentially higher death benefit than premiums paid
- Chronic or terminal illness benefit options
- Take income now or over time