Our Services: Life Insurance

Life Insurance in Retirement

You probably have a basic idea of what life insurance does. Its primary purpose is to provide for your loved ones after you’ve passed away. However, life insurance in retirement can provide much more than just a death benefit. In fact, an indexed universal life (IUL) insurance policy can be used by you while you’re still alive, as a tax-free* income source. Furthermore, some retirees use IULs to protect some of their assets while earning a reasonable rate of return** over time.

If you have money in low-earning CDs or money market accounts, an IUL may help you see a better rate of return.** Using life insurance in retirement can also provide legacy benefits, such as tax-free* income, to your beneficiaries. IULs also pay your beneficiaries without the hassle of going through probate court. If you’re interested in the benefits offered by this product, reach out to us. Life insurance in retirement may be the right choice for you.

Older woman leaning against a wall with her arms crossed, enjoying her retirement

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IUL For Retirement

Depending on your situation, life insurance may be a great source of retirement income. One reason for this is that insurance products follow different rules than traditional retirement plan accounts. For example, how they’re affected by taxes. If you currently have a retirement plan such as a traditional IRA or 401(k), you pay taxes on your withdrawals. And, when you get to a certain age, you must withdraw some funds and pay those taxes. This is called a Required Minimum Distribution, or RMD.

In contrast, you can take income tax-free* from an IUL policy. What’s more, you may be able to slowly convert some of the money from your retirement accounts into an insurance policy instead. If you’re looking to lessen the burden of taxes on your retirement, an IUL may be of use to you.

Grandfather spending time with grandson and reaping the benefits of life insurance in retirement
Garndparents pushing grandson on the swing at the park enjoying their retirement.

Choosing the Right Life Insurance

When you’re nearing or in retirement, your objectives for your financial vehicles may start to change. Usually, retirees look at ways of protecting their money, rather than risking it in investments like stocks. This is because, now that you’re living off of that money, and not earning any income from working, you can’t suffer a loss.

Similarly, your life insurance goals may begin to change as well. In your earlier years, you may have viewed life insurance’s primary purpose as providing for your family once you’re gone. This need may have become secondary in your mind, compared to making sure you’re able to stay afloat in retirement. Of course, maintaining protection for your family is still important. However, retirement brings additional challenges that may impact your initial strategy, such as tax implications. So, choosing the right type of life insurance in retirement is essential. GreenLine Retirement, LLC can help you focus on protecting your money and your loved ones. For example, you may be able to achieve both of these goals with an IUL.

Benefits of Life Insurance

Using life insurance as part of your retirement strategy has many benefits. First, there are the aspects of these policies that can help you during your retirement:

  • The cash value of an IUL is protected from loss in the stock market
  • Cash value growth is based on the performance of a market index
  • Ability to lock in what you accumulate
  • Income tax-free* growth
  • Flexibility
  • Access your principal and any interest, tax-free*
  • Policy can be funded all at once, or over time
  • No fees or fines for accessing the money before age 59 1/2

Legacy Benefits

Benefits available to your heirs include:

  • Immediate death benefit (avoids probate)
  • Death benefit can be much greater than the premium paid
  • Income tax-free* for the beneficiaries
  • It can be received as a string of payments or one lump-sum
  • Death benefit can increase over time
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