Life Insurance In Retirement

Life insurance is often overlooked by people when they begin to plan for retirement.

Generally, most people only know the basics about life insurance. It is well known that the right life insurance policy can provide financial protection for those left behind. However, there are other reasons to purchase life insurance in retirement. This includes potential tax-free* income for your beneficiary, death benefits, and more. Contact us to explore your options.

Tax-Free* Retirement Income

There are several types of life insurance policies available. Certain life insurance products can provide a tax-free* retirement income. For example, index universal life (IUL) policies have no maximum contribution limit unlike traditional 401(k)s and IRA(s). Additionally, with an IUL you may also be able to choose when and how much to withdraw from your policy. Also, because life insurance is not an investment, it is not subject to the same tax restrictions as other retirement options.

Since the income can be withdrawn at any time tax-free* during retirement, an IUL can be useful for additional expenses. You may also choose to take income throughout the remainder of your retirement. People have different reasons for purchasing life insurance in retirement. We encourage you to reach out to us to determine if an IUL is right for you.

Benefits of an IUL

An IUL as part of a retirement strategy offers many advantages to retirees. These benefits can help you financially during your retirement years, for instance:

An IUL policy can help you protect your cash value even in a down market
You can potentially increase your cash value with a stock market index
Potential earnings may be locked in
It is possible to choose the number of indexes you want for your IUL
Tax-free* income is possible
Interest and principal are tax-free*
Flexibility to withdraw all at once or periodically
No penalties for withdrawing money out before age 59½

Benefits Beyond Your Lifetime

Having life insurance in retirement is a great way to leave a legacy. Beneficiaries may receive the following benefits after your death:

You may receive a higher death benefit than you pay in premiums
The death benefit is tax-free*
The money goes directly to the person you specify - there is no probate court
Benefits can be paid overtime or as a lump sum
The death benefit can increase over time
There may be an option to use some of the death benefits for chronic or terminal illnesses

Does Life Insurance Fit Into Your

Retirement Strategy?

If you meet any of the following criteria, an IUL may be a good tax-free* income option for you:

You have maxed your 401(k), IRA, or another retirement contribution
Tax-deferred or tax-free* strategies interest you
You'd like to have easy access to your money
It's important to you that your income is secure
You may desire income for your special needs adult child

Learn More

Tax-Free* Income Strategies

Keeping your wealth safe and secure over the long term is our priority at Pomarico Financial. That is why we offer educational seminars and insurance presentations to help you learn more about retirement strategies. We’re also here to answer your questions and help you achieve your retirement goals. Reach out to us to explore if about how indexed universal life insurance is right for you.