Couple walking hand in hand

Supplemental Retirement Income Plan – Your Best Option

by | Jun 3, 2020 | Insurance Strategies, Life Insurance

  1. Home
    2.  » 
  2. Insurance Strategies
    3.  » Supplemental Retirement Income Plan – Your Best Option

Numerous individuals use the basic choices available for putting aside tax-advantaged assets, which is 401(k)s and IRAs. However, savvy individuals are utilizing permanent life insurance for a supplemental retirement income plan (SRIP) as one of their vehicles.

Here are the reasons why life insurance is a good option for a supplemental retirement income plan:

Savings & Investment Benefits

  • The cash accumulation can be used for supplemental retirement income or as your own personal piggybank for emergencies.
  • You can access the cash at any age, should need for cash arise before retirement.
  • Products with guaranteed crediting rates offer protection against market loss.
  • Indexed universal life policies (IULs) provide upside growth potential.
  • IULs and whole life policies won’t decrease due to market volatility, so they offer downside protection.

Tax Benefits

  • Growth is tax-deferred, so no tax is due on the appreciation of cash values.
  • Access (tax-free) to the accumulated cash. You can make withdrawals up to basis and take out loans.
  • No Social Security tax, unlike required minimum distributions (RMDs) of qualified plans.
  • The death benefit can provide tax-free income for your heirs.
  • The death benefit is paid directly to your heirs so it avoids probate.

Lifestyle Benefits

  • There are no required minimum distributions (RMDs) at age 70 1/2 as with qualified plans.
  • Depending on where you live, there is protection against creditors and lawsuits.
  • Some policies offer living benefits from your death benefit that allow you to take part of the death benefit early under certain circumstances such as a terminal diagnosis.
  • Anyone can purchase life insurance, there is no minimum age or income requirement. However, it does have health and financial requirements.
  • With a Disability Payment of Premium rider, premiums will continue to be paid if you’re disabled.

Today we live in a world of low-interest rates and volatile stock markets. Permanent life insurance provides unique benefits as a savings instrument for retirement income. A well-funded SRIP can provide you the income you need for a more secure retirement.

This strategy has been around for decades and it’s just as potent today as when it was first introduced. If you see the potential and can afford to take advantage of the benefits, an SRIP may be the answer to securing your retirement income.

Looks like you have blocked notifications!
  1. Home
    2.  » 
  2. Insurance Strategies
    3.  » Supplemental Retirement Income Plan – Your Best Option

You May Also Like…

Health Coverage Mitigation

Health Coverage Mitigation

Dec 17, 2020

What is Health Coverage Mitigation? Mitigation is defined as the action of reducing the severity, seriousness, or...

What Is A Buy-Sell Agreement?

What Is A Buy-Sell Agreement?

Dec 23, 2019

A buy-sell agreement – aka a buyout agreement – is a contract designed to protect a business should something happen to the owner or owners, sort …

0 Comments

%d bloggers like this:

This website provides information for the reader to choose to request more information about life insurance, insurance for small business, health insurance, Medicare, and supplemental insurance including how to request a quote. By requesting a quote, you agree to our Privacy Policy and our Terms & Conditions. If you submit your personal information, you are making a consumer inquiry for life insurance, insurance for small business, health insurance, Medicare, and supplemental insurance through me as a licensed insurance producer as more fully described below. By proceeding, you give your consent and expectation to be contacted by Richard E Smith and/or associates. Any health or personal information shared is protected by applicable privacy laws and regulations, including HIPAA.

Invitations on richardesmith.com for application for insurance are made through Richard E Smith an independent agent/producer. Richard E Smith is a licensed insurance producer in Florida (License# W568154).

Commercial use by others is prohibited by law. No portion of richardesmith.com may be copied, published, faxed, mailed or distributed in any manner for any purpose without prior written authorization from the owner.

Insurance policies described, quoted, shown, and illustrated throughout this website are not an offer for the sale of any particular insurance policy or product, only an invitation for application for insurance coverage and may not be relied upon. There are many variables in different insurance coverages and companies, including various insurance company standards and offerings, underwriting requirements and may not be available in all states.

We do not sell your personal information to anyone! You will not receive unsolicited, intrusive calls or emails from other agents and companies across the country. If you do provide your telephone number, Richard E Smith and/or his associates may call or text message/SMS you at the phone number(s) above, including your wireless number if provided. Normal charges may apply. This call may be generated using automated technology and if we're unable to reach you when we call, we may leave you a pre-recorded message, so you can call us back. Your consent to us calling is not required to get a quote or make a purchase and may be revoked at any time. You may simply call us at 239-596-8449. | Privacy Policy | Terms of Use