A Tax-Free* Retirement Option

Protective Life Insurance

The team here at Turney Financial Group, LLC Is Focused on One Thing:

Protecting Our Client's Retirement

You’ve worked hard to earn your money. Now, you can learn how to keep it safe from potential losses, while creating potential income for life. When you’re ready for that next step, we’re here to help. Join us at a seminar or call us to schedule your appointment today.

How Does Protective Life Insurance Work?

When you start planning your retirement, you’re probably not thinking that life insurance could play a role in your retirement tax strategy. And why should you? Life insurance is not an investment, and that means it follows different tax laws. For instance, with an indexed universal life insurance policy (IUL), you have the option to retire tax-free.* An IUL gives you access to your money through income payments. But, because it isn’t a retirement plan with money directly in the stock market, there is no tax on the income you tax. Of course, each person’s financial situation impacts whether or not an IUL is the right choice for them or not. So, be sure to speak with a professional to see if an IUL is the right choice for you.

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Your Options For

Life Insurance

Different Types

There are various types of life insurance to pick from. One, term life insurance is paid as a death benefit if you pass away in terms of the policy and doesn’t hold any extra value. Indexed universal life insurance policies (IULs) are another category of life insurance products. Usually, an IUL may provide more options and benefits for retirees than a term or whole life insurance policy. Another type of life insurance policy is max-funded cash value life insurance. Usually, this type of life insurance policy comes with more flexibility. Besides providing a death benefit, max-funded cash value life insurance policies have the potential to build cash value. Certain types of these policies will allow you to withdraw money from the cash value built. You can withdraw this money tax-free* because the cash value is technically just an overpayment of life insurance. In addition, some policies will allow you to borrow against your cash value. In this instance the money received is a loan, meaning you can collect it tax-free* as well.

Can it Provide An Income During Retirement?

The possibility for income is a lesser-known benefit of life insurance, especially when it comes to an indexed universal life insurance policy. The basic premise of life insurance is to provide income for your loved ones and family once you have passed away. With the right type of insurance, this is possible. But many retirees are unaware that it also has the potential to provide for you during your retirement as well. An indexed universal life insurance policy could be an essential aspect of your retirement savings strategy. The money from an IUL can be accessible during emergencies. Some retirees use the funds from an IUL to cover more substantial purchases or expenses. Also, you may want to use the funds for college expenses for your children or grandchildren. By using the funds from an IUL you have the potential to leave the rest of your retirement savings accounts untouched. Still, every policy and situation is different so it is crucial to ask for advice from a professional.

Tax-Free*

Retirement Options

As you get nearer to retirement you may be questioning what are your tax-free* retirement options.

Does a tax-free retirement even exist? Well, with the right retirement strategy, tax-free* income may be achievable. For example, indexed universal life insurance policies (IULs) may be the most suitable alternative for those in retirement. Indexed universal life insurance policies provide a way to your cash value without being taxed. This includes potential tax-free* income for your beneficiary, death benefits, and much more.

One large benefit of life insurance is that you get to leave a legacy. Money that is in an insurance policy is subjected to different tax laws. Not only will your beneficiaries inherit your money tax-free, but they also avoid probate. Your entire life you’ve worked hard to protect your loved ones. Picking the right insurance policy can help make that happen.

An indexed universal life insurance policy is not appropriate for every retiree. Depending on your circumstances and needs, there may be different solutions available. But in certain situations, an IUL may be the best option. Life insurance may be a good tax-free income option for you if any of the situations apply to you:

  • You are already maxing contributions to your 401(k), IRA, or other retirement plans
  • You have maxed your 401(k), IRA, or another plan
  • You are interested in tax-deferred or tax-free strategies
  • You’d like to have simple access to some of your money
  • Income protection is essential to you
  • As a parent of a special needs adult child, you may require income for your child
  • You like the notion of being able to withdraw cash whenever you need it
  • Stable income matters to you
  • The income value required is less than your life insurance’s “cost basis”



Get Educated About Tax-Free* Retirement Strategies

Turney Financial Group, LLC is dedicated to making sure our clients are educated on what’s possible for their retirement. Life insurance could play a fundamental role in your retirement strategy. Contact our team today for a complimentary retirement account and strategy review. We will evaluate your current strategy during our one-on-one meeting, answer any questions, and make recommendations. Your legacy should be protected, and we are to assist you to do exactly that.

*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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