Life Insurance For Retirement

Life Insurance

Life Insurance For Retirement

retired couple on a jog talking about life insurance for retirement

You have, at least, a rudimentary understanding of what life insurance is for. Its main purpose is to provide for your loved ones after you pass away. However, life insurance for retirement can offer far more than just a death benefit. For example, an indexed universal life (IUL) insurance policy can be utilized to generate tax-free* income for you while you are still alive. An IUL can help you secure some of your assets while generating a reasonable rate of return** over time.

If you have money in low-interest accounts like CDs, an IUL could help you earn a higher rate of return.** Life insurance can also provide some unique benefits for your beneficiaries. For example, the death benefit is tax-free* and is paid to your beneficiaries without going through probate court. If you are interested in the features this product offers, please contact us. Attend an informational seminar event to learn about your options, or schedule a one-on-one meeting with us to discuss your specific situation.

IUL For Retirement

Depending on your specific circumstances, life insurance may be an excellent source of retirement income. One reason for this is that insurance policies apply to different rules than traditional retirement accounts. For example, different tax rules apply: If you have a retirement plan account, such as a traditional IRA or 401(k), you must pay taxes on withdrawals. And, after you reach a particular age, you must take required minimum distributions (RMDs) and pay the taxes on them. In contrast, you can withdraw income tax-free* from an IUL policy. Additionally, you may be able to transfer some of the funds from your current retirement accounts into an IUL instead. So, if you’re looking to lessen the burden of taxes on your retirement income, an IUL may be of use to you.

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Benefits of Life Insurance For Retirement

Using life insurance for retirement comes with a number of benefits. Firstly, there are the features of these policies that help you during your retirement:

  • the cash value of your IUL remains protected even in the event of a market downturn
  • Cash value growth based on the performance of a market index or indexes
  • Fund your policy all at once, or over time
  • Tax-free* growth
  • No fees or fines for accessing the money before reaching age 59 1/2
  • Tax-free* access your principal & any interest

Then, there are benefits available to your heirs after you pass away:

  • Immediate death benefit (avoids probate)
  • The death benefit can be received as a string of payments, or as one lump-sum
  • The death benefit can be much greater than the premium paid
  • Tax-free* for the beneficiaries
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Three Principles

2824 Grand Ave, Suite 101
Everett, WA 98201

21 Avenue A, Suite A
Snohomish, WA 98290

205 Stewart Rd, Suite 110-2
Mount Vernon, WA 98273

411 W Washington Ave, Suite 3
Sequim, WA 98382

2501 SE Mile Hill Dr. Suite A-107
Port Orchard, WA 98366

*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.

By contacting Charlene Ness Lic WAOI #250047/National Producer #6742816/WAOIC Business Entity License: BUS1007160/Ness Financial Group, LLC, you may be offered information regarding the purchase of insurance products, including fixed index annuities and life.

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