Life insurance, as you know, provides valuable death benefit protection. What many people may not realize is that life insurance can provide additional value when used as a supplemental retirement tool to reduce your taxes in retirement.
Life Insurance in Retirement Planning
A properly designed life insurance policy can provide a tax-free income source in retirement, along with a tax-free death benefit. For high income individuals who have maximized funding of existing qualified/non-qualified plans, a policy can reduce current portfolio taxes and reduce overall taxable income in retirement. A properly designed policy should be minimizing the death benefit cost to keep the fees to a minimum and focus on the growth of the account value.
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