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.

Choosing the Right

Life Insurance For Retirement

How do you determine the right life insurance in retirement? Dotson Financial 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.

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. Dotson Financial 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.

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 o the death benefit for terminal or chronic illness

Contact Us

Contact Dotson Financial in order to discuss your situation and options. We also offer monthly educational seminar events, both in-person and online. Call us or visit our seminars page to learn more.

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