Tax Free Retirement

What if you could provide an income tax-free death benefit for the people who depend on you? What if you could defer taxes as your accumulated cash value grows? What if you could potentially access that cash value, using income tax-free policy loans and withdrawals, to use for retirement income or other needs?

How you can save for retirement:

After Tax


i.e. private savings, CD

Tax Deferred


i.e. annuities

Pre Tax


i.e. traditional IRA qualified plans, 401(k) and 403(b)

Tax Free


i.e. Roth IRA, permanent life insurance

After Tax Strategy: when you set aside a portion of your tax income into a retirement account. Taxes are paid annually on any earnings. Example: Certificate of Deposit.

Tax-Deferred Strategy: when you set aside a portion of your after tax income for retirement, earnings on the account grow tax-deferred. When retirement income is taken, taxes are due on the tax-deferred gain. Example: Non-Deductible IRA or annuity. 

Pre-Tax Strategy: when you don't pay current taxes on contributions made to the plan and earnings grow tax-deferred. Later, when you take retirement income, the benefits are income taxable. Example: employer-sponsored plans like 401(k) and 403(b).

Tax-Free Strategy: similarly to the Tax-Deferred Strategy, you set aside a portion of your after-tax income, and earnings grow tax-deferred. Retirement income is received tax-free. Example: ROTH IRA and permanent life insurance.

Roth IRA or Permanent Life Insurance?

The Roth IRA is a good choice - if you qualify. In order to contribute to a Roth IRA, your adjusted gross income must be below a certain threshold. But what if you don't qualify for a Roth IRA, or if you want to contribute more than a Roth IRA allows?

This is where Permanent Life Insurance comes in. The primary purpose of purchasing permanent life insurance is for the death benefit protection that it provides. However, it also offers the ability to build up tax-deferred cash value that can be accessed during your lifetime to generate a stream of retirement income - potentially income tax-free.

Please consult with us to determine the best retirement planning strategy for you.


*Source: National Life Group.