Life Insurance: Tax Free*

Tax-Free* Retirement Options

What are your tax-free* retirement options? Does such a thing even exist? Well, with the right type of planning, tax-free* income is possible. An indexed universal life insurance policy might be a good tax-free* income option for those in retirement. An indexed universal life insurance policy allows access to your cash value without taxation. There are also other possible benefits to an indexed universal life insurance policy. These include death benefits, potential tax-free* beneficiary income, and more.

What Are Your Beliefs Regarding

Tax-Free* Retirement Options?

No one knows the future, obviously. But you probably have some thoughts about how taxes could look in the future. Do you think taxes could be higher in the future? If so, you might want to create a strategy now to address that possibility. Taxes impact your retirement income, and changes in tax law can also affect your overall retirement strategy. Taxes can take away your precious money if you have money in lower interest-bearing accounts. No matter where you think taxes are going to go, you should have a strategy for every scenario. You should know your options for reaching your goals.

Consider which of your assets may be taxable versus non-taxable. An indexed universal life insurance policy with cash value, for instance, allows you access to your money without paying income tax on it. But certain retirement accounts demand that you pay taxes on any money you access. Some of that money may also be at risk in the stock market. Money in an indexed universal life insurance policy, on the other hand, is protected from stock market loss. See, instead of being directly invested in the markets, it’s tied with an index. Details of different indexed universal life insurance policies differ, of course, but the tax-free* income benefits are universal across all of them.

laughing couple fishing together tax free retirement options white bear lake mn

Are You Eligible to Retire Tax-Free*?

Could an indexed universal life insurance policy be the right choice for you? Feel free to reach out to us at Safe Harbor if you have any questions. We’re here to help. We can discuss your current financial situation, and see if an indexed universal life insurance policy is right for you. Below are a few questions to ask yourself about tax-free* retirement options:

  1. Do you think taxes will be higher in the future?
  2. If taxes are higher in the future, then should I start preparing now?
  3. Do I have any tax-free* money set aside?
  4. How would I offset higher taxes in retirement?
  5. How much in taxes will be beneficiaries have to pay?
  6. Should I look at a way to reduce the taxes my beneficiaries will have to pay?
  7. Would I rather pay taxes now, or pay them later at potentially higher rates?

Having more information about tax-free* retirement strategies may impact your retirement. We don’t know for sure how tax laws will change in the future. And we can’t tell you how it will affect your money with certainty. But we can come up with a strategy for the different possibilities. You might be able to give yourself a tax-free* income option in retirement, using an indexed universal life insurance policy. Additionally, you may see a potential upside indexed interest that could provide a reasonable rate of return** over time. 

Safe Harbor Retirement Solutions Will Help You Discover Tax-Free* Retirement Options

In the long run, planning for how taxes might change could help increase your overall retirement income. Please contact us today for more information about tax-free* retirement options.

Scroll to Top