Life insurance &

Retirement Tax Strategies

You may not realize this, but life insurance may be part of your retirement tax strategies. Why? Because life insurance is not an investment and, therefore, has different tax code to follow. For example, with an indexed universal life insurance policy (IUL), it is possible to retire tax-free. An IUL gives you access to your money via income payments. But, since it isn’t a retirement plan with money directly in the stock market, there is no tax on the income you tax. Of course, each person’s financial situation impacts whether or not an IUL is the right choice. So, be sure to talk with us to find out more.

Tax Free Retirement Options

We’ve all heard that there are two things we can count on: death and taxes. However, depending upon how you design your retirement tax strategies, you may be able to have income, tax-free. When you think about taxes, do you think they will go up or down over time? Most people think a rise in taxes is more likely than a drop. If that’s true, how will an increase in taxes affect your retirement income? Certainly, tax law and tax code changes do have an effect on retirement. For example, estate tax laws can change how much you can leave behind for your loved ones. To be sure, knowing your options regarding taxes and retirement is key to your long-term success. In fact, life insurance may be an important part of your plan.

Enjoy life, ride your bike in retirement by leveraging retirement tax strategies

Life Insurance Retirement Tax Strategies

Although you may not think of life insurance as a vehicle for retirement income, it actually can be used for that purpose. Certain retirement accounts and investments have tax regulations that require taxes to be paid on earnings. In addition, many accounts call for you to pay taxes on withdrawals. However, a life insurance policy such as an IUL is not subject to the same tax code. In fact, an IUL does not have money in the stock market. Therefore, your money is not at risk, either. So, IULs may provide a way for retirees to receive an income, tax-free. Of course, every policy has its own conditions and terms, so be sure to reach out to find out which options are available for you.

Can You Use an IUL To Retire?

Is it possible that a permanent life policy such as an IUL may work for you? A few things will help you decide. Below is a list of some criteria to consider. Our team at Green Line NW is here to help answer your questions, and walk you through the possibilities. In addition, we can go over any current policies or retirement account you have and determine some next steps. Together, we can find out if a tax-free retirement is in your future.

Do any of the following apply to you?…

  • Do you believe taxes might be higher in the future?
  • Think you should plan for a possible tax increase?
  • Have an option to increase income if taxes go up in retirement?
  • Know the impact of taxes on your beneficiaries?
  • Wonder how taxes may impact your estate plan?
  • Looking for tax-free retirement income ideas?
  • Would rather pay taxes now instead of at a possibly higher rate later?
older woman drinking tea while doing paperwork and contemplating retirement tax strategies

Learning More

Indexed Universal Life (IUL) insurance has several benefits for certain situations. Of course, no one can be certain what tax rates will be down the road. However, we also can’t know how those rates may impact your retirement. What you can do, though, is to make a plan. IUL insurance may be an option worth exploring. Some retirees also appreciate the peace of mind this type of plan provides. Their money is safe from market loss, and they are able to tax an income, tax-free.

Attend one of our “Greenline” or “Tax-Free Retirement” virtual or in-person workshops to learn more. Or, if you prefer, simply call our office for a no-cost and no-obligation meeting. We’re here to answer all your life insurance and retirement tax strategies questions.

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