Look Closer at Tax-Free Retirement Strategies

Roth IRAs: Good choice… if you qualify. In order to contribute to a Roth IRA your adjusted gross income must be below a certain threshold. Also, even if your income is below the threshold the total amount you can contribute is limited and could phase out should your income increase.

What are your options if you don’t qualify for a Roth IRA, or if you want to contribute more?

Permanent Life Insurance: 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.

Permanent Life Insurance Provides:

• Income tax-free death benefit

• Tax-deferred build-up of cash value

• Potential for tax-free retirement income

Tax-Free Retirement Strategy

Using Permanent Life Insurance

Additional Benefits of Permanent Life Insurance

Self Completing

In the event of a premature death, the income tax-free death benefit would help fund your spouse’s retirement goals.

Access to Funds in the Event of Illness

Accelerated Benefit Riders are available at no additional cost and may allow you to access all or a part of your death benefit to help pay for costs associated with a terminal, chronic or critical illness.

Protection in the Event of Disability

For an additional fee, many policies offer an optional Waiver of Premium Rider that continues to pay your planned premiums if you became permanently disabled, keeping your policy on track with your original accumulation goals.

So what is best for you?

For many people, a Roth IRA is a great tool. However, as mentioned earlier, there are some restrictions as to how much you can contribute and how much income you are allowed to have in order to qualify for a Roth IRA.

Permanent life insurance may be the solution.

If you have someone who depends on you financially, then you may need life insurance. In addition to the death benefit protection, permanent insurance cash value can also serve as an accumulation vehicle, with some great tax advantages. Premiums are determined based on the amount of coverage you need and distributions, through tax-free withdrawals and loans, can generally be taken after your first policy anniversary. Your insurance agent can help you determine the best coverage to meet your goals.

It may be that a combination of the two works best for you.

If you meet the income eligibility requirements for a Roth IRA, but want to set aside more than the contribution limits allow and you have a need for protection, you may want to do both a Roth IRA and Permanent Insurance. Contribute the maximum you can under the Roth and then apply the excess amount to your life insurance coverage.

Put the power — and tax advantages — of permanent life insurance to work for you today!