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Since the income can be withdrawn at any time tax-free* during retirement, an IUL can be useful for additional expenses.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

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.

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