Permanent Life Insurance not only helps to protect your beneficiaries, it also allows you to build cash value that can be used in a Tax-Favored manner.

What if you could:

  • Provide an income tax-free death benefit for the people who depend on you
  • Defer taxes as your accumulated cash value grows
  • Potentially access that cash value using income tac-free policy loans and withdrawals, to use for retirement income or other needs

Would you be interested?

Strategies to Save for Retirement

  • After-Tax- (Private Savings, i.e. CD) – After-Tax Strategy is when you set aside a portion of your after-tax income into an account earmarked for retirement. Taxes are paid annually on any earnings. An example of this type of savings is a Certificate of Deposit.
  • Tax-Deferred- (Annuities) – Tax-Deferred Strategy is when you set aside a portion of your after-tax income into for retirement, earnings on the account grow tax-deferred. When retirement income is taken, taxes are due on the tax-deferred gain.  A Non-Deductible IRA or an annuity is an example of this type of savings.
  • Pre-Tax- (Traditional IRA, Qualified Plans 401k and 403b) – Pre-Tax Strategy might include an Employer sponsored qualified plan like a 401k and 403b plan. You don’t pay current taxes on contributions made to the plan and earnings grow tax-deferred. Later when you take retirement income the benefits are income taxable.
  • Tax-Free- (Roth IRA, Permanent Life Insurance) – Tax-Free Strategy is similar to Tax-Deferred Strategy: you set aside a portion of your after-tax income, and earnings grow tax-free. A Roth IRA is an example of this type of savings.  Another type of financial vehicle of this Tax-Free Strategy is Permanent Life Insurance.

It’s not just about how much you can accumulate for retirement………you need to consider taxes on retirement income.

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.  In 2018, contributions are limited to $5,500 per person unless you’re 50 or older and then you can contribute an extra $1,000 as a catch-up provision.

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 tax-free.

How it Works:
Each premium payment you make

Builds cash value income

Provides an income tax-free
Death benefit to your named

Cash value that you can use during your lifetime, through policy loans and withdrawals, to provide a tax-free retirement income. Optional Accelerated Benefit Riders allow you to access the death benefit during lifetime in the event of a Terminal, Chronic, Critical illness or injury.


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


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 disability

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, critical illness or critical injury.

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.