Life Insurance for Retirement
Can life insurance supplement an IRA?
Life insurance can supplement an IRA 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. Unlike a Roth IRA, there are no contribution limits for life insurance.
Key Points
- Life insurance supplements an IRA by providing tax-free income
- Permanent life insurance: builds cash value accessible tax-free
- Policy loans: access cash value without triggering income tax
- No contribution limits: unlike Roth IRA
- An independent agent can help you evaluate life insurance as an IRA supplement