How to Help Your Clients Plan for Retirement with a Life Insurance Retirement Plan (LIRP)
- By Michael Hall
- January 12, 2016
Retirement is on your clients’ mind. Help them plan for it with a Life Insurance Retirement Plan (LIRP). ### Do you have a vision for how permanent life insurance fits into the retirement puzzle?### One of the biggest fears most people have when it comes to retirement is running out of money before they die. Help calm these fears by talking to your clients and prospects about an LIRP.
An LIRP is a specialized form of permanent life insurance that has tremendous value to your clients but is often overlooked.
Here are three sample advantages of using permanent life insurance as a retirement asset.
1) The policyholder will get tax-deferred growth.
This widely favorable advantage that comes with the cash-value element of the a holder’s permanent life insurance policy indicates that he is not required to pay taxes on any interest or capital gains on his life policy until he decides to withdraw the proceeds.
2) The policyholder can access the cash value before retirement if needed.
In times of financial emergency, the policyholder can borrow the cash value of the retirement plan. There will be a small distribution penalty to be handled, but if time is of the essence, the retirement plan can turn into a real lifesaver.
3) The policyholder can receive accelerated benefits if he becomes terminally or critically ill.
This is an advantage that is rarely available with term insurance policies. If the policyholder is diagnosed with a specified condition, he may get from 25 to 100 percent of the death benefit from the insurance policy while he is still alive. These specified conditions include any form of invasive cancer, heart attack, and end-stage renal failure.
Watch our webinar, Life Insurance as a Retirement Asset, to learn more.