Unlocking Your Retirement Potential: A Deep Dive Into Life Insurance Retirement Plans

Unlocking Your Retirement Potential: A Deep Dive Into Life Insurance Retirement Plans
With professional guidance, you can determine if a LIRP can help you achieve your retirement goals and secure your financial well-being. Rawpixel.com /Shutterstock
Due
By Due
Updated:
0:00

When planning for retirement, financial decisions must balance security, growth, and tax savings. The Life Insurance Retirement Plan (LIRP) is a lesser-known yet powerful tool for retirement planning.

In contrast to traditional retirement accounts such as 401(k)s and IRAs, LIRPs use the cash value from permanent life insurance policies to provide tax-advantaged income. This article examines LIRPs, their benefits, and why they may be valuable to your retirement plan.

Term vs. Permanent: Understanding the Foundation

Before diving into LIRPs, it’s important to understand the two primary types of life insurance: term and permanent. Both policies offer a tax-free death benefit if they are active when the policyholder dies. Nevertheless, they differ greatly in terms of their features.