What is a Life Insurance Retirement Plan? (LIRP)
Life insurance is commonly used to provide financial protection in the event of premature death. Your clients (or you) can protect their spouse, children, business, or other beneficiaries.
However, cash value life insurance can provide more than protection. It may be used to accumulate tax-deferred dollars that provide income options to supplement retirement. This type of strategy is commonly referred to as a Life Insurance Retirement Plan (LIRP).
A Life Insurance Retirement Plan (LIRP) is a strategy that utilizes life insurance (typically an IUL) that is structured to maximize cash value. This is done by reducing the death benefit to the lowest level while maintaining the tax benefits of life insurance. This will create the maximum amount of tax-free income to be used during retirement. Check out our sample proposal to see how that works:
If you'd like to learn more about how this strategy is structured, please use the form to review our easy-to-understand, 1-page infographic: