Planning for retirement, whether that’s five years away or 25 years down the road, is something each of us needs to consider. Making smart choices about how much money you save, and what retirement planning savings vehicles you use, can mean the difference between having the income you need in retirement to live the lifestyle you want, or struggling financially. There is no one-size-fits-all solution when it comes to saving for retirement, but if you prefer a product that offers safety and guarantees, you may want to consider the retirement protection benefits offered by annuity products and indexed universal life (IUL) insurance policies.
An annuity is essentially an insurance product. With deferred annuities, the contract holder can accumulate money over a period of years by either making an initial deposit and watching it grow or by making periodic deposits over time. Funds invested in retirement annuities grow tax-deferred.
When you’re ready to start drawing on your annuity, you “annuitize” the contract and turn it into an income stream so you receive a series of regular payments each month, quarter, or year.
An Indexed Universal Life (IUL) policy is permanent life insurance coverage with both an insurance component and a cash value savings component. The cash value can be indexed to a financial market index, offering policyholders the upside potential that comes with investing in the markets while still retaining the protection of life insurance coverage.
Get a customized retirement plan that’s right for you.
When you’re ready, you can turn your annuity into a series of payments
Your annuity is risk-free; its value doesn’t sway with the markets
Reach your retirement goals on a schedule that works for you
Get the upside potential that comes with investing in the markets while still retaining the protection of life insurance coverage.
Many of the annuity and life insurance products available through Insurance Wealth Management come with guarantees that can be invaluable.
The best part is that choosing a product with guarantees does not mean you have to give up the potential for growth in your annuity or cash-value life insurance policy
There are fees and expenses associated with any type of retirement planning vehicle, and retirement protection annuities and insurance products are no different.
When you work with Insurance Wealth Management to explore retirement protection options, we’ll explain the fee structure of various products and answer any questions you have to help you make an informed decision.
Most annuities used for retirement protection are “guaranteed issue” products that require no underwriting, so nearly everyone qualifies.
Because of the life insurance component of IUL policies, you need to meet the insurance company’s underwriting criteria in order to qualify for the product. Additionally, many IUL policies don’t require a medical exam, which can save you some time overall.
When you are saving for your retirement, the best time to buy retirement protection through annuities or life insurance is now.
Most people purchase an annuity before they reach retirement age. Annuity products often come with surrender charges for a period of time after making the initial purchase, so it’s important to understand how each policy you are considering treats withdrawals, especially in the early years of the contract.
Because an IUL policy has a life insurance component, the cost you pay will be based in part on your age at the time you purchase the policy. The younger you are, the more affordable the premiums are. This means you may be able to direct additional funds to the policy cash value to be used during your retirement.
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