Let's Review Your Questions About

Life Insurance

At DPG Senior Solutions, we will review your unique situation to help you personalize your approach to retirement.

smiling senior couple hugging tax free retirement columbus oh
couple walking in park with their pet dog tax free retirement columbus oh

Tax Free Retirement

Is it possible to have a tax free retirement?

The answer is, “Yes, it is possible.” In fact, certain types of life insurance, such as IULs can provide income for you without taxes. An IUL is anĀ indexed universal life insurance policy. Other types of life insurance may also allow for income payments yet do not require a tax. Sometimes, whole life insurance and variable life insurance plans can provide a similar payout.

How Does It Work?

You may be familiar with our life insurance, in general, works.

The Idea Is To Provide For Your Loved Ones When You Are No Longer Able To.

Typically, people select a life insurance plan in order to have peace of mind. However, there may be other reasons for choosing life insurance in retirement. First, certain life insurance plans can provide a tax free retirement income. Secondly, you may have flexibility in terms of how much you take out, and when you take it. Because life insurance is not an investment, it does not have the same tax code as other retirement options do.

For example, an indexed universal life (IUL) plan could be used as a form of savings. Some people use an IUL as a safe place to keep additional money in case of an emergency. The money kept in your cash value may also be used for big purchases or perhaps for college costs for your kids or grandkids. By using the money in an IUL instead of the money in your retirement accounts for these items, you may have tax advantages. In addition, this practice allows your other retirement accounts to remain untouched. Of course, your implications may vary so be sure to reach out to learn more.

Making a Tax Free Retirement Happen

Of course, not every retiree will end up using life insurance as income. This is because every situation is different and takes planning and thought. However, you may be able to earn an income without paying taxes if you use an IUL.

To clarify, here are some reasons people may consider this as a solution:

Those We Leave Behind

Of course we know that someday we won’t be here anymore. When we’re gone, many of us want to know that those we leave behind will be ok. Life insurance in retirement can offer a way to do this. One advantage of life insurance in retirement is that its laws and tax code varies from investments. In other words, your retirement account wealth may be subject to taxes. But, an IUL can distribute its death benefit value directly to your beneficiaries, without probate. Tax free retirement income that may also leave a legacy.

Options for Life Insurance

DPG Senior Solutions is driven and dedicated to our clients. Therefore, we do everything we can to provide you with what you need to make an informed decision. We’re not pushy or “salesy.” Instead, we educate people at our complimentary dinner seminars and via our online webinars. Also, we offer one-on-one meetings to go over your questions or review your current policies. When you’re ready to talk, we’re here for you.

Scroll to Top