For many individuals, long-term care is of chief concern. But when it comes to preparedness, they may fall short in carrying out their due diligence. This stems from an understandable hesitancy to pay steep premiums, especially for an intangible commodity such as life insurance. However, a Life Insurance Retirement Plan (LIRP) offers a variety of advantages that sets itself apart from lesser tools.
Take a look at this previous episode of our podcast on the subject of LIRPs and other “dead money” plans, and continue reading for additional information.
Those who opt to use a LIRP as their means of saving for retirement or to secure their loved ones’ financial security later in life reap the added benefit of growing their savings through a wide variety of methods via this form of tax-free life insurance, including:
- Fixed interest (a safe way to accrue extra cash with each passing year)
- Index funds (direct investment opportunities based on stock performance)
- Mutual funds (paying out more than the initial investment made into bonds, stocks, or other securities chosen)
A Return on Investment Above the Rest
With a LIRP, the life insurance benefit comes with the product, meaning you aren’t spending additional money for this benefit. In addition to the coverage, the investment grows over time, while most standard life insurance policies lose money due to inflation. Our recommendation grows over time with the market, as much as 5-6%.
Most of the hybrid indexed annuities that we recommend come with an income doubler during a health event. If your health situation satisfies particular requirements, your income doubles for that period. With a LIRP, you are taking advantage of the death benefit while you’re alive in the form of recurring income. Since it grows, so does your income. And that doubler supplies you even more funds when you need them the most.
Reach out to Secure Retirement Strategies Today!
Our company is proud to offer strategic financial planning services to residents throughout the following Pennsylvania and New Jersey communities:
- Chester County, PA
- Lehigh County, PA
- Northampton County, PA
- Bucks County, PA
- Mercer County, NJ
- Hunterdon County, NJ
For additional information about tax-free long term care, reach out to a member of our team today!