Life Insurance For Retirement
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 A certain amount of money must be withdrawn and taxed when you reach a certain age.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.
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.