You may wonder what

Life Insurance In Retirement

can really mean for you

Life Insurance
More than a death benefit

Life Insurance In Retirement

You may have a basic idea of what life insurance does: provides for your loved ones when you are gone. However, life insurance in retirement can give you much more than just a death benefit. In fact, with an indexed universal life (IUL) policy, you can use it as a means of tax-free* income. Additionally, some retirees use IUL’s as a way to protect some of their assets, while earning a reasonable rate of return over time.

Also, if you have money in low-earning CD’s or money market accounts, an IUL may help you see a better return. Using an IUL as life insurance in retirement can provide legacy benefits as well, such as tax-free* income to your beneficiaries. IUL’s also pay your beneficiaries without the hassle of probate. In fact, if you have a cash value life insurance policy now, such as whole life, variable life, or universal life, you may be able to upgrade those plans to an IUL. Be sure to talk to us about your options.

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Retirement Strategy & IUL’s

Depending on your situation, using life insurance in retirement may be a great solution. One reason for this is due to the tax-free* income benefits of an IUL. Remember that an IUL is an insurance policy. Therefore, the premium (the money you put in) has different tax rules than the money you invest in the stock market.

For instance, if you currently have retirement plans such as traditional IRAs or 401(k)’s, 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 this case, an IUL may be of interest to you. Why? Because you could slowly convert some of the money from your retirement accounts into your IUL. By doing so, you could then take the money income tax-free* from your IUL policy.

Knowledge is power

At Messina's Wealth Management, we want our clients to have all the information they need in order to make the best choice. Want to learn more about your options? Give us a call. Or, attend one of our events to learn more. All events are no-obligation and many include a complimentary gourmet meal at on of our local restaurants. Relax, enjoy and learn!

Choosing the right

Life Insurance

When you’re in or near retirement, your objectives for your financial vehicles change. Usually, retirees begin to look at ways of protecting their money, rather than risking it in the market. Similarly, life insurance goals may begin to change as well. In your earlier years, you may view life insurance’s main purpose as providing for your family if you are gone. Now, since you’ve built up a retirement savings, this need may become secondary in your mind.

Of course, maintaining protection for your family is still an important piece. However, retirement brings with it additional challenges that may impact your initial strategy, such as tax implications. Therefore, choosing the right type of life insurance in retirement is important. Our professional agents can help you focus on protecting your money and your loved ones. With an IUL, for example, you can acheive both of these goals.

Benefits Of

Life Insurance in Retirement

There are many benefits for retirees using an IUL as part of their retirement strategy. First, there are aspects of these policies that can help you during your retirement years. These benefits include:

In addition IUL's offer some unique benefits

when it comes to your legacy

These benefits may include:

  • Immediate Death Benefit Much Greater Than The Premium Paid
  • Death Benefit is Income Tax-Free*
  • Avoids probate and Passes Directly to Beneficiaries
  • Can Be Received as a Lump Sum or as an Income
  • Death Benefit Can Increase Over Time
  • Insured Can Potentially Accelerate a Portion of Death Benefit for Terminal or Chronic Illness (Long Term Care Cost)

Looking to learn about life insurance options?

Attend one of our sessions or schedule an appointment. Let’s discuss the different types and which is be for 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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