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The Benefits of Insurance

Tax-Free Retirement Income: How YOU Can Benefit

With the recent U.S. government shutdown and concerns about the country’s finances, people are starting to question how ‘secure’ their social security benefits will be in the future. Even for those who do receive social security checks, that income alone may not be enough to support them during retirement. There are options that can provide a tax-free retirement income in addition to social security benefits.

Tax-Free Retirement Income

Index universal life insurance is a great way to save money for your tax-free retirement. This policy has a living benefit, which is the cash value that you can access, as well as a death benefit that will be paid to your beneficiaries upon your passing.

The money that you put into your policy will gain interest on a fixed rate, or at a rate based on equity, bond index, or an index like the S&P 500. With an index universal life insurance policy, there is NO market risk. This means that you will gain interest when the market is up, but you are guaranteed a minimum interest rate so you cannot lose money.

This coverage allows you to access the cash value of the policy tax-free. You don’t have to repay the money you take from the policy as long as your policy is active. If you chose not to pay back the money you take from the policy, it will be deducted from your death benefit.

Many people use index universal life insurance as a vehicle for a tax-free retirement income. They use the money from the policy when they need it, and the remaining balance of their policy is paid to their beneficiaries to cover their final expenses when they pass away. It’s a great way to have extra money during retirement with no taxes or market risk, while still having the protection of life insurance.

If you’re interested in a tax-free retirement income with index universal life insurance, visit our Tax-Free Retirement page. You can also take a look at our Social Security and Index Universal Life page to find out how pairing your social security checks with this coverage can benefit you.

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