LIFE INSURANCE

Tax-Free Income Options

In addition to providing lifetime income options, our practice also offers tax-free income choices for retirees as well. Certain life insurance policies, such as Indexed Universal Life insurance (IUL) may provide a way to take income during retirement, tax-free. Because an IUL is not an investment, it is not subject to the same rules as traditional retirement account options. For example, IUL’s do not have a maximum contribution limit like traditional 401(k)s or IRA(s) do. And since your money is held by the insurance company, your cash value is generally more protected.* You can also tie your rate of return to an index. Unlike investing directly in an index fund, you are less likely to lose money when the market declines. This way, no matter what the market does, an IUL can help protect your money.

Sometimes we’ll use an IUL as another savings account. Since the income can be taken out at any time, tax-free, an IUL can be useful for additional expenses. Or, you may choose to take income from it so that the rest of your retirement remains intact. Everyone has a unique situation, of course, so be sure to talk with us to find out if an IUL could be right for you.

*Insurance products are backed by the financial strength and claims paying ability of the insurance carrier.

Is This True For You?

• You believe taxes will be at a higher rate when you retire.
• You should prepare now for a possible tax increase later.
• You believe you should have a way to counter-balance higher taxes during retirement.
• You do not have a current strategy for tax-free* money in retirement.
• You feel it is better to pay at least some taxes on money now versus paying taxes later at a higher rate.

If you believe any of these to be true, we should talk about ways to secure your retirement now.