Life Insurance

Options to Retire Tax-Free*

Options for Taxes in Retirement

Is it possible to retire tax-free? Tax-free* income is possible with the right tax strategy.  For example, Index Universal Life (IUL) insurance policies, may offer advantages for taxes in retirement other policies do not. 

An IUL is used for:

  1. Reducing taxes
  2. Earning income in retirement
  3. Protecting your money loss

Life Insurance and Taxes In Retirement

Although life insurance isn’t typically thought of as a retirement income source, it can be. Certain retirement vehicles are typically subject to tax. Additionally, withdrawing funds from these vehicles is usually subject to taxes. However, IULs are not taxed in the same way as other life insurance policies. IULs do not actually invest in the stock market, though they can be linked to an index. Your money, therefore, is not at risk. As a result, an IUL may provide tax-free retirement income. Each policy has its own terms and conditions. We can help you determine what options you have regarding taxes in retirement.

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Is An Iul Suitable For Retirement?

two senior women jogging together with big smiles on their faces taxes in retirement life insurance options chicago il

Our team at MTD Financial team can help you determine if an IUL is a good fit for you. We can also review any current policies you have and suggest the next steps. Listed below are some questions to consider. 

  • Are taxes going to increase in the future? 
  • Do I have any options to offset rising taxes in retirement?
  • Are my beneficiaries subject to a tax burden? Is it possible to minimize the impact?
  • Is it better to pay taxes now or to pay taxes at possibly higher rates in the future?

Explore Your Options

Indexed universal life insurance (IUL) offers several benefits. Additionally, we do not know how the future tax rates may affect your retirement. But you can plan ahead. Also, it may be worthwhile to explore IUL insurance. As a part of their tax strategy, many retirees use an IUL. The principal of their money remains safe from market declines and their income is tax-free*.

To learn more about options for taxes in retirement attend one of our “Greenline” or “Tax-Free* Retirement” workshops. 

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