Are you thinking about getting a life insurance retirement plan (LIRP) for your retirement? LIRPs come with a myriad of benefits and if you are still on the fence, you may need some more information to make your decision.
Looking at exactly what you will get from a LIRP and assessing the risk is one of the best ways to ensure that you are making the right decision for your future.
Here is a more in-depth look at LIRPs and how they can benefit you.
What Is a Life Insurance Retirement Plan?
A life insurance retirement plan is a permanent or cash value life insurance policy that you will fund overtime. This will help you to build up a significant amount of cash value on the policy until you are ready to retire.
You can use almost any type of cash value policy that you have to do this. LIRPs can usually guarantee you a certain principal and interest rate on your investment. This lets you know how much you stand to gain over the lifetime of the policy.
How Do You Fund a LIRP?
Funding a life insurance retirement plan is not complicated. It requires that you take out a cash value life insurance policy that covers the amount that you want when you are ready to retire.
After that, all you have to do is overfund the policy. You can do this by paying more than the set premium for the policy. This excess amount that you pay will go into the cash value of your policy.
This simple payment structure makes LIRPs one of the simplest ways of saving for retirement. There are not a lot of rules and red tape that you will have to go through to maintain this policy.
Who Needs a LIRP?
Before you take out any life insurance policy, you must thoroughly assess its suitability for your needs. No insurance policy is right for everyone and taking the time to assess whether or not a LIRP is right for you is a good decision.
LIRPs are good investments for high-income earners who are already contributing to traditional retirement savings and are looking for additional ways to save for their retirement.
If you have a child with special needs who will always need care, should you die, your LIRP insurance can provide the necessary funds to support your child. If you have a high net worth that will cause high estate taxes, your LIRP can be used to pay off these additional costs.
Secure Your Future
A life insurance retirement plan is one of the best options you can use to secure your financial future when you retire. Whether you want to use the money for yourself or leave it to a child, or other family members you can accumulate funds easily with a LIRP.
You can even take care of any estate taxes you have incurred with the funds from a life insurance retirement plan.
If you would like more financial information, please visit the finance section of the website. We publish a wide variety of helpful articles each month on insurance and monetary security.