What is An IUL?

Life Insurance For Retirement

When you're in or nearing retirement, your objectives for your financial vehicles most likely change.

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Retirees typically begin looking for ways of protecting their money. It’s important to make sure your savings aren’t at risk in the event of a stock market downturn. Your life insurance goals may also begin to change as retirement approaches. The need to provide for your family after your passing may become a secondary goal to you.

Maintaining protection for your family is still important, of course. But retirement brings with it additional challenges that may impact your initial strategy. For this reason, choosing the right type of life insurance to use in retirement is important. Here at Laurus Financial, we can help you devise a strategy to protect your savings and your loved ones. One example of a way to achieve this goal is an IUL.

What is an IUL

…and how can it be used in your retirement strategy?

Depending on your individual situation, using an IUL in your retirement strategy may be a great option. An IUL is an insurance policy, and therefore, the premium (the money that you put into it) has different tax rules. Different than, say, money invested in the stock market.

If you currently have a retirement plan such as a traditional IRA or a 401(K), you will have to pay taxes on your withdrawals. Additionally, you will have to withdraw funds after you reach a certain age. You may be able to convert some of the money in these accounts into an IUL, however, which is why it may be of interest to you.

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What are an IUL's Benefits?

There are several benefits to using an IUL in retirement. First, there are the aspects of an IUL that can help you during your retirement years:

What are an IUL's Legacy Benefits?

An IUL also offers some unique benefits when it comes to your legacy. These could include:

Using an IUL to Retire Tax-Free?*

Is it actually possible to gain tax-free* income with life insurance? If you choose the right policy, you may be able to retire tax-free.* An IUL is a great tax-free* income option for retirees. With an IUL, policyholders can have access to the cash value of their account without paying taxes on that money.* Although, it’s important to note that everyone’s situation is different. You should reach out to us to review the products and policies available to you. Our team at Laurus Financial is here to help you learn more about your retirement options. We can help to examine your current situation and decide if an IUL could be a part of your financial retirement strategy.

To help determine if an IUL may be a viable option for you, we’ve put together some questions you may want to ask yourself:

  • Do you believe that taxes will be higher in the future? If so, should you start preparing now?
  • Do you have a way to offset higher taxes in your current retirement strategy?
  • How much, if any, tax-free* money do you have set aside?
  • Given the choice, would you rather pay taxes on some of your money today, or pay potentially higher taxes in the future?
  • What will the tax burden be on your beneficiaries, and is there a way to minimize it?
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Bottom line? Finding a way to get tax-free* income can greatly impact your retirement.

No one knows for sure, of course, what taxes and tax laws will be in the future. But we do know it is helpful to have a strategy that keeps possible changes in mind. Using an IUL, you can provide yourself and your family with tax-free* retirement money. Additionally, you can take advantage of some upside and get a reasonable rate of return**, over time. Lastly, you may be able to increase your income over the long term by decreasing your tax burden.

Learn More

We want our clients to have all the information they need to make the best choice for their retirement strategy. Want to learn more about your options? Give us a call or attend one of our no-cost, no-obligation events to learn more.

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