Life Insurance For Retirement

How to Use

Retirement Life Insurance

In addition to leaving money for your beneficiaries after your death, life insurance also offers other advantages. Consider the possibility that your retirement life insurance policy may also provide you with income in retirement. Furthermore, life insurance can provide financial security while earning a reasonable rate of return**. 

Learn More
grandparents sitting with their grandchild at the table drawing life insurance retirement cedar rapids ia

Retirement Strategy and Indexed Universal Life

Depending on your situation, you might want to consider an indexed universal life (IUL) policy. As an insurance product, IULs can generate tax-free* income. In this case, your contribution is subject to a different tax treatment than your stock market investments.

For instance, you pay taxes if you withdraw money from a traditional IRA or 401(k). A certain amount of money must be withdrawn and taxed when you reach a certain age. It is called a Required Minimum Distribution (“RMD”). Perhaps an IUL policy could be useful in this situation. A portion of your retirement money can be transferred gradually into your IUL. In this case, you could receive tax-free* funds from your IUL policy.

Selecting the Right Retirement Life Insurance

As people approach or reach retirement age, their financial needs can change. Retirees tend to seek out safer alternatives for their money over time rather than assume too much risk. Most of the time, this also applies to life insurance. When you were working, you may have been able to cover your family if you weren’t able. Since you have accumulated money for retirement, this goal may be secondary. 

 

However, protecting your family is still a priority. Additionally, retirement can bring new challenges, such as tax implications. Therefore, choosing the right retirement life insurance is important. An IUL allows you to meet both of these objectives.

portrait of senior couple in a garden life insurance for retirement cedar rapids ia

Key Advantages of Life Insurance

Using an IUL  offers many benefits to retirees including:

 

  • An IUL’s cash value is not reduced by market losses
  • Stock market indexes determine the growth of IUL cash values
  • The ability to protect what you accumulate
  • The option to choose how diverse you want your IUL indexes to be
  • Cash value grows tax-free*
  • The principal and interest are both tax-free*
  • It can be funded all at once or over time
  • There are no fees for accessing funds under the age of 59 1/2

Protect Your Legacy

Upon your death, your IUL can also provide you with the following benefits:

  • The total premium paid is less than the death benefit
  • *Death benefits are not taxed
  • Beneficiaries receive direct payments. And, there is no probate
  • The beneficiary can receive a lump sum or installment payments
  • Death benefits could increase over time
  • It is possible to accelerate a portion of death benefits for terminal or chronic illnesses

Learn More About Life Insurance in Retirement

Our team at Flying Eagle Financial is dedicated to helping you protect your wealth and legacy. 

Get In Touch
Contact Info
Our Services
Our Company

1425 Boyson Road
Hiawatha, IA 52233

3336 Kimball Avenue, Suite 250
Waterloo, IA 50702

2550 Middle Road, Suite 300
Bettendorf, IA 52722

1052 University Avenue, Suite 1
Dubuque, IA 52001

1111 S. Alpine Road, Suite 207
Rockford, IL 61108

6600 Westown Parkway, Suite 30
West Des Moines, IA 52066

*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.

 

IMPORTANT CONSUMER INFORMATION
This site is for informational purposes only and is not intended to be a solicitation for or offering of any product or investment. The offer for sale of an insurance product may only be conducted in a state where the agent is licensed and the product is approved for sale. The providing of investment advice relating to securities may only be done by a properly licensed individual operating through a licensed affiliate entity, unless otherwise exempt. Comments about past performance are not to be construed as a guarantee or assurance of future performance. This website may contain concepts that have legal, accounting and tax implications. We do not provide specific legal or tax advice, nor promote, market or recommend any tax plan or arrangement. Consult a tax/legal professional for guidance with your individual situation. No representations are made as to the accuracy or completeness of the information contained herein or any information contained in any link provided herein, nor does a consumer visiting the website create an agent-client relationship.

 

By contacting Flying Eagle Financial IA Ins Lic# 249040/Kelly Campbell IA Ins Lic #19643763, you may be offered information regarding the purchase of insurance products, including fixed index annuities and life.

Scroll to Top