Life Insurance for Retirement
Can life insurance supplement a 403(b) retirement plan?
Life insurance can supplement a 403(b) retirement plan by providing tax-free income in retirement through policy loans. Permanent life insurance (whole life, IUL) builds cash value that can be accessed tax-free. This strategy is used by teachers, nurses, and other non-profit employees.
Key Points
- Life insurance supplements a 403(b) by providing tax-free income
- Permanent life insurance: builds cash value accessible tax-free
- Policy loans: access cash value without triggering income tax
- Used by: teachers, nurses, and other non-profit employees
- An independent agent can help you evaluate life insurance as a 403(b) supplement