Posted by When we first started formal work in the United States, we were exposed to retirement account plans.These retirement accounts usually have different levels of tax incentives.The accounts we generally use to save money for retirement are401(k) accountOr IRA account.
But if it will matter to us for a lifetimeRetirement income, If only using this "basic" solution to solve, not only the income channel is too single, but also the risks faced are not dispersed enough.In real life, we will use cash value life insurance (Cash Value, Chinese means cash value) Insurance policy to supplement your 401(k) account or IRA account.Such a combined retirement strategy will provide us with greater financial flexibility. At the same time, it will also provide financial protection for our spouses and children.Dollar retirement income planningThe common "upgrade" plan.
Have cash value (Cash Value) Life insurance is different from term life insurance.inAmerican Life Insurance GuideOfColumnPointed out that term life insurance is aPure consumer products, Only the function of compensation.Life insurance with cash value is an "account" opened with an insurance company. We can "deposit money" into the policy account and use this "deposit".The preferential tax conditions provided by the cash value policy account can also benefit us and everyone in the family.
Use life insurance with cash value (Cash Value Life Insurance) to supplement and enhance ourRetirement income, Has the following 4 advantages:
1. Provide financial protection for the family
When we unfortunately encounter an accident, it has cash value (Cash Value)oflife insuranceA tax exemption will be provided for our family (beneficiaries)1 Compensation.The beneficiaries can freely spend this money to avoid financial difficulties caused by our inability to continue to provide financial resources for the family.American Life Insurance GuideFor example, the money can be used to pay for housing loans, children’s future tuition, or daily living expenses.
2. The value-added potential of delayed tax payments
Have cash value (Cash Value)ofLife insurance account, Provides the value-added potential of tax deferral, therefore, we can use it as a financial channel to invest in the future.When we applied to open a life insurance account with cash value, a part of the premium was put into an investment strategy for compound interest growth with "tax incentives".If we have already filled our 401(k) account or IRA account, or are looking for other fund management methods with the advantage of "delayed taxation", then those with cash valuelife insuranceIt is particularly attractive.
3. Tax exemption2Complementary income potential
Through toPolicy lendingOrWithdraw the principalWay, we can "tax-free"2To take money out of the cash value life insurance policy account.Therefore, after a professional policy design, the cash value (Cash Value) Life insurance policy accounts can form a stable source of retirement income.
At the same time, the method of borrowing and withdrawing the principal also has time flexibility-whether it is before or after retirement, we and our families can use the cash value balance of the policy to deal with accidents in life.
4. Advantages of risk management
Article summary
If we are looking for an ideal tool, we require this tool not only to deal with accidents in life, but also to protect our own and family’s financial situation, and at the same time become a tax exemption.2 If you want to supplement your retirement income, please consider an American life insurance policy with cash value.Before applying for insurance,American Life Insurance GuideIt is recommended to learn and master the US cash value in advance (Cash Value) Of a life insurance policyRelated knowledge and tips, And with a professionalLife insurance brokerCooperation, through tailor-made methods, to achieve the goal of finding a product solution that best meets our current financial situation and actual needs. (Finish)
>>>Recommended reading:Why can life insurance be used as a retirement account to save money?How to get money from insurance?
Disclaimer:
1 For federal income tax purposes, life insurance death benefits generally pay income tax-free to beneficiaries pursuant to IRC Sec. 101(a)(1). In certain situations, however, life insurance death benefits may be partially or wholly taxable. Situations include , but are not limited to: the transfer of a life insurance policy for valuable consideration unless the transfer qualifies for an exception under IRC Sec. 101(a)(2) (ie the transfer-for-value rule); arrangements that lack an insurable interest based on state law; and an employer-owned policy unless the policy qualifies for an exception under IRC Sec. 101(j).
2 For federal income tax purposes, tax-free income assumes, among other things: (1) withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals); (2) policy remains in force until death (any outstanding policy debt at time of lapse or surrender that exceeds the tax basis will be subject to tax); (3) withdrawals taken during the first 15 policy years do not cause, occur at the time of, or during the two years prior to, any reduction in benefits ; and (4) the policy does not become a modified endowment contract. See IRC §§ 72, 7702(f)(7)(B), 7702A.Any policy withdrawals, loans, and loan interest will reduce policy values and may reduce benefits.
3 Indexed universal life insurance products do not directly participate in any stock or equity investment.
