How can I get tax-free income at retirement?
There aren't many ways to get tax-free income at retirement
One way is municipal bonds, but you run the risk of losing your money or you'll get low returns. Another way is through a Roth IRA, but there are income and contribution limits associated with a Roth IRA that put a cap on how much money you can put into the account.
An excellent way to receive tax-free income is through a policy loan on a life insurance policy -- specifically an indexed universal life insurance policy offered by Provision Financial.
What is indexed universal life insurance?
Indexed universal life insurance is a permanent life insurance policy that has a living benefit in the form of a cash value, in addition to a death benefit that is paid at death. The cash value in your policy earns interest based on either a fixed interest rate, an interest rate that is based on the increase in an equity or bond index or a combination of both. What makes indexed universal life insurance unique is the ability to earn interest based on the movement of an external index (like the S&P 500). With indexed based interest, you are likely to earn higher interest over time than with a fixed interest rate.
Indexed universal life insurance is a great tool for retirement savings because you are able to take advantage of a portion of the gains in the market when an index rises without having to take any of the risks when an index decreases. In other words, your money is at NO market risk. If the index goes down in any given year, you are guaranteed that your cash value will not decrease due to that market loss.
Not only are you able to save money for retirement through the cash value in your indexed universal life insurance policy, if you were to die prematurely, your loved ones will receive the death benefit of the insurance policy federal income tax free.
Our tax-free retirement services
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Tax-Free Retirement Income. Life insurance is one of the very few vehicles that can provide you with income in retirement that is 100% income tax-free. You can use this tax-free income for anything -- like funding a child's college education, providing them a down payment on their first home or any other needs.
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In addition to saving money for future tax-free income needs, your life insurance policy provides a significant death benefit that will go to your beneficiaries tax-free in the event of your premature death.
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Upside Market Potential with Zero Market Risk. Your indexed universal life insurance policy gives you the opportunity to earn interest on your premiums that will increase as the market increases but will never decrease due to a market downturn.
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Market Gains Cannot be Lost in the Future. As you earn interest on your cash value in the life insurance policy, those interest gains are locked in & cannot be lost in the future if the market has a loss.
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Flexibility. Premiums may be increased or decreased. Your death benefit may be increased or decreased. So as your needs change, your policy can change with them.
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Probate Avoidance. Your life insurance policy will bypass the lengthy and potentially expensive probate process so your loved ones can access the funds quickly when you pass away.
Learn how you can set up a tax-free retirement plan by filling out our quote form. One of our highly-skilled retirement specialists will work with you to develop a plan that fits your budget and income needs.