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Life insurance is a flexible tool that can help protect your loved ones upon your death because generally the income tax-free death benefit 1 can help them: Maintain their current lifestyle Pay off household debts Fund college education Pay estate taxes Fund surviving spouse’s retirement plan Create a legacy Some types of permanent life insurance policies can offer you death benefit protection plus the potential to build cash value that can be used to supplement your retirement income on a tax- advantaged basis. Generally speaking, cash-value growth on a permanent life insurance policy can help you in the following unique ways: Income tax-free death benefit A life insurance policy’s death benefit is typically income tax-free 1 . Tax-deferred cash value Potential to accumulate tax-deferred cash value. Access to money on a tax-advantaged basis Some products offer the potential to take tax advantaged loans 2 and withdrawals 3 from the certificate’s cash value. Life Insurance in Retirement Planning Helping is who we are. Visit foresters.com to see how we can help you.

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Page 1: Life Insurance in Retirement Planning - ASA Group › wp-content › uploads › 504734-life...Life Insurance in Retirement Planning Helping is who we are. Visit foresters.com to see

Life insurance is a flexible tool that can help protect your loved ones upon your death because generally the income tax-free death benefit1 can help them:

� Maintain their current lifestyle

� Pay off household debts

� Fund college education

� Pay estate taxes

� Fund surviving spouse’s retirement plan

� Create a legacy

Some types of permanent life insurance policies can offer you death benefit protection plus the potential to build cash value that can be used to supplement your retirement income on a tax-advantaged basis. Generally speaking, cash-value growth on a permanent life insurance policy can help you in the following unique ways:

Income tax-free death benefitA life insurance policy’s death benefit is typically income tax-free1.

Tax-deferred cash valuePotential to accumulate tax-deferred cash value.

Access to money on a tax-advantaged basisSome products offer the potential to take tax advantaged loans2 and withdrawals3 from the certificate’s cash value.

Life Insurance in Retirement Planning

Helping is who we are.Visit foresters.com to see how we can help you.

Page 2: Life Insurance in Retirement Planning - ASA Group › wp-content › uploads › 504734-life...Life Insurance in Retirement Planning Helping is who we are. Visit foresters.com to see

1 Foresters, their employees and life insurance representatives, do not provide, on Foresters behalf, legal or tax advice. The information given here is merely a summary of our understanding of current laws and regulations and is not specific to your situation. Prospective purchasers should consult their tax or legal advisor.

2 Generally, loans can be taken if the certificate is in effect and has a positive cash value. Interest on the loan is charged as described in the certificate. Loans will reduce the death benefit and cash value of the certificate and may result in the lapse or termination of the certificate.

3 Generally, withdrawals may be taken if cash value is available, subject to terms and conditions of the certificate. Withdrawals will reduce the death benefit and cash value of the certificate and may be taxable when the cost basis is exceeded. Depending on the product, withdrawals of cash value may require the surrender of the certificate.

Foresters Financial and Foresters are trade names and trademarks of The Independent Order of Foresters (a fraternal benefit society, 789 Don Mills Road, Toronto, Canada M3C 1T9) and its subsidiaries. AT128

For producer use only. Not for use with the public. 504734 US (01/19)

Top five benefits of using life insurance in your retirement planning strategy

Many people who purchase life insurance select the highest death benefit amount to meet their protection needs and then select a policy that offers the least amount of premium possible. But to accumulate greater potential cash value, you may want to reverse that process:

� Buy a life insurance policy with a lower face amount (but still meeting your protection needs).

� Maximize the premium payments you are making by overfunding the policy. You can help your policy accumulate larger cash values than if it received only the minimum payments.

1. An opportunity to supplement your retirement income if you are already maximizing your contributions to qualified plans.

2. Access to accumulated cash values for ANY reason, including retirement income.

3. Utilize available policy riders for greater protection and flexibility.

4. The potential to diversify your existing retirement plans.

5. The chance to delay taking your Social Security benefits until later in life—potentially increasing your monthly payout.

The key to making this strategy work best

How does it work?

Premium paymentPremiums are paid to keep the policy in force.

Withdrawals

Tax-advantage loans

Balance applied to cash value for growthYou can access the cash value through loans and withdrawals (typically federal income tax-free) to provide supplemental income when you need it.

Cover the policy costPart of the premiums will cover policy costs and part of the premiums will go towards cash value growth.

Death benefit protection in case of an unexpected deathUpon your death, the remaining death benefit will be paid to your beneficiaries.

Cash value growth tax-deferred. During retirement, access cash value for supplemental income by taking:Loans and withdrawals, which will reduce the cash value as well as the policy’s total death benefit.

Helping is who we are.Visit foresters.com to see how we can help you.

To learn more about how life insurance may be a viable solution in your retirement strategy call: