Planning For Retirement

Retirement is meant to be enjoyed without worrying about your retirement planning. Let Panichelle Insurance help you retire stress-free. 

What is a life insurance retirement plan (LIRP)? 

A life insurance retirement plan, or a LIRP, is a permanent life insurance plan that uses the cash value to help fund retirement. A LIRP is taking out a whole life policy and borrowing against its cash value to supplement your income from other retirement plans like a pension, Roth IRA or 401K. This plan only works with whole life insurance, as term life insurance policies do not accrue cash value.

The intent is to maximize the cash value for future loans. There are plenty of benefits to including a LIRP in your retirement planning. 

Why should I get a life insurance retirement plan?

A good investment! – Most people don’t think of term life insurance and investing the saved money when considering how a life insurance policy can help meet retirement-savings goals. Yet for many, it’s the most effective strategy. Retirement savings can grow in a tax-advantaged way for disbursement later in life.

There is no income limit to a LIRP — Unlike a Roth IRA, there are no earned income limits. This means high-income individuals can also participate in a LIRP strategy.

LIRP Provides Guarantees and Safety – A LIRP provides a floor to your investment returns, also known as a guarantee. The guarantee means that you will never have a year in which you take a loss, and depending on your product choice and allocation you may be able to get a guarantee that you’ll never get less than 3 or 4%.

Ensuring you have a consistent source of income will allow you to maintain your lifestyle in the future if you change how much you work. Truth is, it’s always the right time to make a simple plan and take steps toward saving for retirement.

Ready to plan your retirement? Please contact us at today!

Leave a Comment