How to Choose the Right Life Insurance for Your Retirement Plan

Retirement planning is an important part of any financial portfolio. Having a good life insurance plan is a great way to access tax free funds and provide for your family in the event of your untimely death. With so many different types and structures of life insurance available, it can be difficult to know which one is best for your retirement plan. In this article, we’ll discuss what a life insurance retirement plan is, the benefits of such a plan, how to choose the right life insurance for your retirement plan, and getting help from an advisor when making this decision.

What is a life insurance retirement plan?

A life insurance retirement plan, (also referred to as a LIRP), is a type of life insurance policy that combines the features of a life insurance policy with a savings or investment account. This type of plan allows you to save money for tax free access in the future while also providing a death benefit for your loved ones. The cash value of the policy accumulates over time and can be used to supplement your retirement income tax free.

When you purchase a life insurance retirement plan, you structure premium payments that are used to fund the policy and the investment account. The premiums are invested and the returns are used to pay for the life insurance policy and build value. You can use the cash value of the policy to supplement your retirement income tax-free or access the death benefit for Long Term Care expenses.

Again: a properly structured LIRP manages a balance between death benefit and cash value growth.  When it comes down to it, owners of a properly structured LIRP policy will not have to pay any taxes on the money they are withdrawing from the policy’s cash value. Additionally, the cash value of the policy is accessible for emergencies or other needs that may arise during retirement.

Benefits of a life insurance retirement plan

There are many benefits to having a life insurance retirement plan. An obvious benefit is that it provides a death benefit to your beneficiaries in the event of your death. This death benefit can be used to help your loved ones by replacing lost income due to your death or used for any purpose they decide.

Life insurance retirement plans also provide a way to save for your retirement. The money you invest in the policy can be used to supplement your retirement income tax free and help you maintain your desired lifestyle. The cash value of the policy is available at your discretion for any reason without restriction.

A big benefit of a properly structured life insurance retirement plan is that the money you invest in the policy grows tax free. This means that you do not have to pay taxes on the money ever. This can help you save money in the long run and ensure that you and your family have enough money to enjoy retirement.

Finally, life insurance retirement plans are flexible. You can adjust the amount of your premium payments and the amount of your death benefit as your needs and circumstances change. This allows you to tailor the plan to your specific needs.

How to choose the right life insurance for your retirement plan

Choosing the right life insurance for your retirement plan can be a daunting task. In addition to a plethora of insurance carriers to choose from, there are a variety of life insurance policies available, each with its own unique features and benefits. Here are some tips to help you choose the right life insurance for your retirement plan:

1. Determine your needs. Before you choose a life insurance policy, it’s important to determine your needs. How much money do you need to supplement your retirement income? How much death benefit do you need to provide for your loved ones in the event of your death? Knowing your needs will help you determine the right type of policy for your retirement plan.
2. Consider your current financial circumstance. It’s important to consider what your current financial situation is when choosing a life insurance policy. You want to make sure that the premiums are affordable, yet still choose a plan that gets the most return on investment.  
3. Compare policies. Once you know your needs and current financial status, it’s time to compare policies. Look for a policy that provides the features and benefits that you need and that fits within your budget.
4. Get advice from an expert. We can’t recommend enough getting advice from a financial advisor, especially one that specializes in life insurance retirement planning. Secure Retirement Strategies are experts at properly structuring LIRP’s.

Getting help from an advisor when choosing a life insurance retirement plan

Getting help from an advisor when choosing a life insurance retirement plan can be a great way to make sure you are making the right choice. An advisor can help you understand your needs, compare different policies, and determine the best policy for your situation.

As we mentioned before, it’s critical for you to understand your current situation, as well as your desired financial outcomes, before wading into the waters of life insurance retirement policies.  This is what differentiates Secure Retirement Strategies from most other firms.  

We aren’t in the business of simply shelling out policies to whoever might be willing to buy one.  It is our mission as a firm to provide our clients with a holistic view of their entire financial health, evaluating every aspect of their portfolio.  We will then discuss what your retirement future looks like for you, and determine the best course of action.  Only then will we be able to determine which policy is right for your situation and then, by extension, recommend which carrier you should choose.

When you do speak with an advisor at Secure Retirement Strategies, be sure to bring all your questions. One of our strengths is our willingness and ability to explain different policies in detail and to explain the differences between them. We have a host of client references you can ask to speak with regarding our past history serving them and their retirement planning needs.  

Conclusion

Choosing the right life insurance plan can be a daunting task. It’s important to understand your needs, consider your budget, compare policies, and get advice from an expert at Secure Retirement Strategies to make sure you are making the right choice.

A Life insurance retirement plan is an important part of any financial portfolio. With the right plan, you can ensure that you and your family are taken care of in the event of your death, that your retirement savings are secure, and that your financial goals in retirement are achieved.