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.