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Figuring out a financial plan for your future is very important. One part of a financial plan that always needs to be considered is your life insurance needs. While many younger individuals in the Evergreen Park, IL area will purchase life insurance when they are young, there are benefits to getting it when you are old as well. In fact, life insurance could be used to create a tax-free retirement for either yourself, your spouse, or your dependents.
1035 Exchange
One method that you can follow that could help you to turn your life insurance policy into a tax-free retirement would be to get a 1035 Exchange. With this program, you will be able to convert the cash value of your whole life policy into an annuity. Depending on the annuity that you get, you can either tax defer this capital or get a tax free annuity entirely. This could help to drastically reduce your long-term tax liability.
Collect Benefits
Life insurance can also provide a tax-free retirement for your dependent or spouse if they collect on the policy. If you were to pass away during the time of the policy, the insurance proceeds received will be available to the beneficiary. Any funds that are received will not be taxed by any taxing authority.
If you would like to learn more about how you could use life insurance to create a tax-free retirement strategy, speaking with the Martin Insurance team would be a great option. The Martin Insurance Team excels at helping Evergreen Park, IL area residents develop long-term financial plans and strategies by incorporating life insurance. They could then help you to create a plan and strategy that is right for your situation.
