Life Insurance
Is Life Insurance for Retirement Right for You?
If your loved ones rely on you heavily for financial support, life insurance for retirement might be worth considering. Most people associate life insurance with providing a payout for their beneficiaries after death. This is true, but certain policies—like indexed universal life (IUL) insurance—can also serve as a potential tax-free* income source for yourself while you’re still alive, on top of providing for your heirs.
Understanding IULs
With an IUL, you pay a premium upfront. This money is linked to a market index. While your policy can earn interest based on that index’s performance, your money isn’t actually invested in the market. That means if the market crashes, your cash value remains protected. This can bring an aspect of confidence and stability during retirement.
One of the most appealing aspects of life insurance for retirement is access to your policy’s cash value. You can borrow against it and use the funds as tax-free* income—without early withdrawal penalties or taxes, unlike traditional retirement accounts.
Why Consider Life Insurance for Retirement?
Key benefits include:
- Cash value protection, even during market downturns
- Indexed growth potential without market risk
- Ability to “lock in” gains
- Flexibility to fund all at once or over time
- Tax-free* growth and tax-free* access to funds
- No penalties before age 59½
Legacy Benefits
Beyond retirement, your beneficiaries also benefit:
- Immediate tax-free* death benefit
- No probate delays
- Potential to increase the death benefit
- Option to receive benefits as a lump sum, or over time
Life insurance for retirement isn’t just about protection—it’s about flexibility, stability, and lasting value for both yourself and your loved ones.