Life Insurance
Tax-Free Retirement
How to Have a
Tax-Free* Retirement
Is tax-free retirement possible? Not entirely. But, you may be able to receive income from certain life insurance products that isn’t subject to income tax. Furthermore, you may be able to “rollover” the money from your Roth IRA, 401(K), or other plan into a different financial vehicle in order to be able to withdraw that money tax-free.* There are other details within your retirement strategy that can lessen the burden of taxes, too.
How Life Insurance Can Provide Income
The basics of life insurance are fairly simple. Basically, life insurance provides a benefit to your family once you are gone. Many people purchase it for this reason, but a death benefit isn’t the only reason to consider it. Life insurance may be able to provide income to you while you are still alive. Although not for everyone, the idea of using life insurance as an income source in retirement could be very beneficial for some retirees.
Some people choose to use an indexed universal life (IUL) insurance policy as a savings plan. This is because the money in an IUL can be accessed in case of an emergency. Using it for situations that require that you spend a lot of money, instead of your other savings accounts, may allow for some flexibility. Learn about all of your insurance options.
That way, you'll have the knowledge you need to reach your retirement goals.
Tax-Free* Retirement
Not all retirees will use life insurance as a source of income, of course. Everyone’s situation is unique. However, you may be in a situation where an IUL will work well. You may be able to earn tax-free* income using a product like an IUL.
Factors that may lead to you purchasing an IUL:
- There is a cap on how much you can put into your 401(k), etc.
- You want to learn about how to defer taxes
- “Just in case” money is important to you
- You value safety, especially in the event of a stock market drop
- Leaving behind a legacy is important to you
- You need your money to be accessible
- Your income needs to align with the “cost basis” of your life insurance cash value
Leaving a Legacy
Leaving a legacy is something that is important to many retirees. Life insurance is a great way to do that. Beneficiaries will receive their money without it having to go through probate, for example. You’ve saved for years, and want to make sure some of that money goes towards protecting your loved ones when you are no longer here. The right type of life insurance product can make sure that happens.
At American Principal, we care about our clients.
We want them to be as informed as they can, in order to make the best decision they can in regards to their financial strategy. Retirement may be the time to re-examine your life insurance needs, and we can help you do that. We can discuss your current status, and discuss other options. You and your loved ones deserve protection. Let us help get it to you.
