Life Insurance

IUL’s Use a Stock Market Index To Determine Cash Value Growth

Life Insurance in Retirement

The main purpose of life insurance is to protect those we love after we pass on.  However, it can serve many other purposes besides providing a death benefit, especially if your policy is an indexed universal life (IUL) policy.  Besides providing income in the event of an unexpected death, it can provide tax-free retirement income. Plus, the cash value can also be used to buffer the market against volatility. Many retirees choose IULs for life insurance in retirement because of their benefits.

Using IULs in Retirement Strategy

Utilizing life insurance in retirement may be a good option depending on your situation. A key reason for this is the tax-free* income benefits of an IUL. Since IULs are insurance policies, your money invested in them is subject to different tax laws.

If you have traditional IRAs or 401(k)’s, for example, you pay taxes on your withdrawals. You’ll also need to pay taxes when you reach a certain age. This is referred to as a Required Minimum Distribution (RMD). In this case, an IUL may be of interest to you. IULs do not have RMDs and are sometimes used to gradually transfer money from retirement accounts. This could enable you to earn tax-free* income.

What Is An IUL?
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Choosing The Right Life Insurance in Retirement

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How do you determine the right policy for your specific needs during retirement?
Retirement specialists can help you sort through your options, apply for the right product, and guide you through the entire process.

Your financial goals change when you reach or approach retirement. Most retirees begin to look for ways to protect their money instead of risking it on the stock market. Life insurance goals may also change during retirement.

Maintaining your family’s protection is still a priority. Tax implications associated with retirement may affect your initial strategy. Therefore, choosing life insurance in retirement that fits your needs become increasingly important. Our specialist at GPS Retirement can help you explore options to protecting your money and your loved ones. IUL policies can help you attain both of those goals.

Retirement Benefits Of Life Insurance

Here are some benefits that you may be able to access with IULs:

  • A method of accumulating funds.
  • Tax-deferred growth is not subject to market volatility.
  • Option to make tax-deferred distributions.
  • Cash value growth based on a stock market index
  • Potential to lock in gains
  • A wide range of index options
  • You can access both the principal and potential interest
  • Earn income tax-free.
  • No penalties for early withdrawals

IUL Benefits Beyond Your Lifetime

Your loved ones can receive the following benefits after you pass away:

  • There is less premium paid than the death benefit
  • A tax-free death benefit*
  • Payments to beneficiaries without probate
  • Paying a beneficiary all at once or in installments
  • Death benefits may increase over time
  • Option to accelerate a portion of the death benefit for terminal or chronic illness
Learn More about the benefits

Contact our team at GPS Retirement to discuss options available to fit your situation.

We also offer monthly educational retirement seminars in-person or online. Call or register for an upcoming seminar.

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*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.

IMPORTANT CONSUMER INFORMATION
Any media logos and/or trademarks used on this website are the property of their respective owners and no endorsement by those owners of the advisor or firm is stated or implied.We are an independent financial services firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. *Any references to protection benefits or steady and reliable income streams on this website refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by insurance company. Annuities are not FDIC insured. The information and opinions contained in any of the material requested from this website are provided by third parties and have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed. They are given for informational purposes only and are not a solicitation to buy or sell any of the products mentioned. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.

By contacting Tom Guidici RI Lic. #2107977/ GPS Retirement RI Lic. #3000099829, you may be offered information regarding the purchase of insurance products, including fixed index annuities and life.

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