Its life insurance awareness month, and during this month it’s important to remember the benefits of life insurance! Talk about it, share with your clients!

Life insurance can address various financial concerns for a range of different clients, including providing a death benefit to replace lost income for your client’s family, covering estate settlement costs, and offering liquidity and more!

When saving for future goals, there are three income buckets for clients to consider: taxable, tax-deferred, and tax-free, each with its advantages and disadvantages. Life insurance, especially permanent policies, can be a smart addition to retirement savings due to its tax-deferred cash value growth, tax-free withdrawals, and the flexibility to stop the income stream when not needed.

Life insurance can provide an attractive tax-free income stream during retirement, assuming a long-term horizon of at least 15 to 20 years for the cash value to grow. Life insurance policies can offer creditor protection under state law, and the death benefit is paid out income tax-free to beneficiaries.

Comparing the tax implications of withdrawing funds from taxable and tax-free buckets during retirement, it’s clear to see the potential advantages of tax-free income from a life insurance policy.

However, life insurance is not suitable for everyone.

It works best for clients who need both a death benefit and retirement income. It is not for those who need immediate access to funds or want a short-term investment. Additionally, life insurance should complement other retirement savings options, not replace them.

In conclusion, life insurance, with its versatility and recent tax law changes, can be a valuable choice for those seeking income protection and tax-efficient income streams in retirement.

If you are in need of reliable life products with different features to suit your clienteles needs, give NFI Solutions a call today, and our analysts will guide you to the perfect carrier and product for your client, no matter what!


952-887-1239 – Call now!