Enhancing Your Retirement

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If you’re concerned about a shortfall in your future retirement income, you might want to consider the benefits of a universal insurance policy.

Universal life insurance can provide the insurance coverage you need, control over your investments to help you achieve the growth you’re looking for, and tax-preferred investment attributes that few other investment options provide. You decide how much insurance coverage you need and how much you can contribute to your investment account, and you pay that amount. Provided certain conditions are met, your investment account income can grow tax-free.

How it works

  • Investing the maximum allowable amount can allow you to take full advantage of the tax-preferred accumulation of income that universal life insurance plans offer.
  • Policies usually increase in value over time, and like many other assets, can be used as collateral for a loan from a financial institution, such as a bank, credit union or trust company.
  • At retirement, you can use your policy as collateral to apply for a series of financial institution loans, which, according to current tax laws, can be arranged without tax implications.

At the time of your death, the loan amount and accumulated interest on the loan can be repaid to the financial institution through the tax-free death benefit, meaning you won’t be leaving your heirs to deal with your unpaid loan.

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