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Tax Free Retirement

Planning on a Tax-Free Retirement?

If you are counting solely on an IRA or 401k, you could be risking your future.

Did you know that Permanent Life Insurance not only helps to protect your Beneficiaries, it also allows you to build cash value that can potentially be used in a tax-advantaged manner?

Permanent Life Insurance Provides:

  • Income Tax-Free Death Benefit*
  • Tax-deferred build-up of cash value
  • Potential for Tax-Free retirement income*

*The primary purpose for purchasing permanent life insurance is for the death benefit protection that it provides. However, permanent life insurance offers the ability to build up tax-deferred cash value that can be accessed during your lifetime to generate a stream of retirement income – potentially income tax-free. What you also need to know is that policy loans and withdrawals, which are an option, will reduce the policy’s cash value and death benefit and may result in a taxable event. Surrender charges may reduce the policy’s cash value in the early years. Withdrawals up to the basis paid into the contract and loans thereafter will not create an immediate taxable event, but substantial tax ramifications could result upon contract lapse or surrender. Policy loans will be taxed as ordinary income if the policy is allowed to lapse. It is possible that coverage will expire when either no premiums are paid following the initial premium, or subsequent premiums are insufficient to continue coverage. When you come into our office we discuss all of this with you and as previously said, we always recommend that you work with a qualified tax professional.