If you’ve never considered how to leverage the living benefits of a life insurance policy, you wouldn’t be alone. Many of our clients simply don’t know the options when it comes to structuring their plans for retirement income.
In this video, Marc Smith, founding partner at Secure Retirement Strategies, elaborates on the living benefits of a LIRP, or Life Insurance Retirement Plan.
Full transcript below the video.
So I hope everyone’s doing well today. I’m Mark Smith from Secure Retirement Strategies. Today I want to talk a little bit about the LIRP. It’s called the life insurance retirement plan, which has been around since Ronald Reagan. Actually, Ronald Reagan was the one who actually introduced the LIRP quite a few years ago. It was called a 702J and then went into code 7702.
That’s the current IRS code today. A LIRP is primarily used for tax-free income, tax-free long-term care, and it has a death benefit if you want to leave it to heirs. For tax-free long-term care you can use at home. It doesn’t have to be in a facility.
You know, this would give you a designated amount of money, 12,000 a month, 13, 14,000, as an example. The money comes to you. It’s not paid to an insurance company, it’s not where an insurance company has to look over it and then they pay the provider. Here, you’re in control of the money. Also, you go to your own family physician, and he, or she basically qualifies you and approves you. So it’s not the insurance company. It’s the letter from your qualifying physician.
But as we go through this, you kind of look at the benefits today. We all know that taxes are going up, not coming down. Right now let’s look at the deficit is getting worse and worse and worse.
Couldn’t be a better time right now.