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It’s important that you have enough income to preserve your lifestyle during retirement. Preserving those dollars with a tax-free income is a great start. That start is Life Insurance.
Similar to other types of retirement savings vehicles, the early stages of funding life insurance act as your accumulation phase. After your policy has had many years to grow and accumulate value then you can start to collect on that money.
The size of the income you can draw from life insurance will vary depending on the type of policy you choose and how it performs. There are policies that can be constructed based on your age, current retirement savings, risk tolerance and desired future income. There are also ways you can structure withdrawals as loans, also a tax-free option. They then get paid back when you eventually pass away.
The amount of payments you can draw from life insurance will vary depending on the type of policy created. Regardless of how the policy is structured, the ability to take tax-free distributions on that life insurance vehicle can supplement your retirement income.