Life Insurance

Life Insurance In Retirement

portrait of couple hiking together life insurance in retirement

Life Insurance in Retirement

The main purpose of life insurance is to provide for your beneficiaries after you pass away. However, it can serve many other purposes, too. This is especially true if your policy is an indexed universal life (IUL) policy. Besides providing income in the event of an unexpected death, it can provide tax-deferred income to you while you’re still alive. Additionally, the cash value can be used to buffer against market volatility. Many retirees choose an IUL for life insurance in retirement because of the benefits they come with.

An IUL as Part of Your Retirement Strategy?

Using life insurance in retirement may be a good option, depending upon your situation. A key reason for this is the tax-free* income benefits of an IUL. The money in an IUL is subject to different tax laws than the money in a traditional retirement account.

If you have an IRA or 401(k), for example, you pay taxes on your withdrawals. You’ll also have to make withdrawals and pay taxes after a certain point. This is called required minimum distribution, or RMD. In this case, an IUL may be of interest to you: IULs do not come with RMDs, and you can transfer money from your retirement accounts into one.

Safety & Protection

Your financial goals most likely shift when you're approaching retirement. Most pre-retirees become more focused on safety and protecting their money as they get older. Your life insurance goals may also change.

You & Your Loved Ones

Protecting your family is still a priority, of course. However, choosing life insurance that can help you in other ways is important. 360 Financial Group can help you explore your options in regards to protecting your money and protecting your loved ones. And an IUL may be able to help you obtain both of those goals.

Choosing the Right Life Insurance For Retirement

How do you determine the right life insurance in retirement? 360 Financial Group can help. We can help you sort through your options, and potentially help you find a product that you can use as a valuable part of your retirement strategy.

Get In Touch With Us Today
money growing out of jar of coins life insurance in retirement

Retirement Benefits of Life Insurance

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

  • A method of accumulating funds
  • Tax-deferred growth
  • Not subject to market volatility
  • Cash value growth based on a stock market index
  • Potential to lock in gains
  • You can access both your principal and interest
  • No penalties for early withdrawals
close up portrait of grandparents with their granddaughter life insurance options

Legacy Benefits

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

  • The death benefit is more than the premium paid
  • The death benefit is also tax-free*
  • It reaches beneficiaries without probate
  • Beneficiaries can receive a series of payments, or one lump-sum
  • There’s the option to accelerate a portion of the death benefit for terminal or chronic illness

Building Your Future On A Solid Foundation

9424 Newburgh Road, Livonia MI 48150

3133 Van Horn, Trenton, MI 48183

10315 Grand River, Suite 306, Brighton, MI 48116

*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.

By contacting Pete Dotson MI License #0278432, Kellie Williams MI License #20882666, Zac Williams MI License #18447934, 360 Financial Group MI License #800781395 you may be offered information regarding the purchase of insurance products, including fixed index annuities and life.

Scroll to Top