How do people
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How do people use Whole life insurance for income during retirement?

Whole life insurance is not just life insurance – it’s been called the Rich Mans Roth for 4 reasons;

  1. You can make unlimited deposit amounts (with no income illustrations)
  2. There is no tax on the growth of your investments
  3. There is no tax when accessed (if properly structured) and
  4. Any money left over for your heirs cannot be taxed

You will never again pay tax on growth of your investments or the money you access within this structure.  This is why it’s been referred to as the Rich Mans Roth
The main attraction to whole life is that the investments are held within an insurance wrapper, gains inside the policy are shielded from income taxes – as is the payout upon death.  What’s more, policyholders may be able to access their money during their lifetimes by withdrawing or borrowing funds, tax free, from the policy, depending on how it’s set up.  The IRS has issued a series of rulings and regulations that have laid out more clearly what’s allowable and what’s not in private-placement life and annuities. That, in turn, has removed uncertainty among insurance and investors.
Besides creating an ongoing income stream, some even use the inside build-up to pay for college instead of a 529 plan.
I’m sure we can all agree that nobody can predict what the tax bracket will be 20 or 30 years from now.  The inside build up within the policy compounds year after year.  When you take money out of the policy during retirement, you are not taxed making the income stream from life insurance safe and predictable.
You don’t have to be rich to enjoy the benefits of whole life – for more information and to answer your questions, call us or email us today.

Resources
Wall st Journal
Money Master the Game by Anthony Robbins

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