Life Insurance

Tax free* Retirement

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So, is tax-free retirement possible? Not entirely. But you may be able to receive an income from certain life insurance IUL policies. In that case, the income isn’t subject to income tax. Other potentially tax-free* income strategies include also taking out money from a Roth IRA or certain Roth 401(k) plans. Depending on your retirement plan, you may have additional tactics in terms of taxes. For instance, a max cash value life insurance policy may create an option for income that’s tax-free.*

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How Life Insurance May Provide Income

The basics of life insurance are fairly simple. Basically, life insurance protects your family once you’re no longer around to provide for them. Many people, of course, choose life insurance to have peace of mind. There’s another consideration, however. A life insurance benefit might also be an income source in retirement. Although it’s not for everyone, some retirees may benefit from this.

Some people choose an IUL policy as a savings strategy. For example, IUL money is available for emergencies or can be liquid. You might also choose to use your money in an IUL for major purchases or even college costs for your grandchildren. You may have more flexibility with how your move your money around by using this money instead of other savings accounts. Learning about all your insurance options will give you the knowledge you need to reach your retirement goals.

How to Have A

Tax-Free* Retirement

Not all retirees will use life insurance as a source of income. Each situation is unique. But sometimes an IUL might work quite well. You might be able to earn tax-free* income with a product like an IUL. You may consider this product as part of your retirement strategy if the following things are important to you:

  • There’s a CAP on how much money you can put into your 401(k)
  • You want to learn about how to defer taxes
  • Having savings in case of an emergency is important to you
  • Protection from the risks of the market
  • You want family members to get income after you pass away
  • The money will be there when you need it
  • If the market drops, you’ll know your money is okay
  • Your income needs to align with the cost basis of your life insurance cash value

Your Loved Ones

Leaving behind a legacy may be important to some retirees. And life insurance may be able to help you do that. The laws and taxes will differ from stock market investments. For example, beneficiaries can get their money without taxes. You’ve been a good saver in order to protect your family, and the right type of life insurance strategy could help you make sure that happens.

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Life Insurance Options

Here at Turney Financial Group, LLC, we care about our clients. And we want you to know all the information that you need to help you reach your retirement goals. Retirement may be a time to re-examine your life insurance needs. Reach out to us today for a review of your current policies. We can discuss your current status and help you look at different options. Your family and legacy deserve protection, so let us help you.

*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.

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