A Potential Retirement Income Vehicle – Life insurance death proceeds as well as cash values enjoy unique income tax treatment. Here are some reasons to consider life insurance as part of a retirement income strategy:
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Life insurance death benefits are income-tax free (as long as the policy is structured properly)
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Life insurance cash values grow tax-deferred
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Life insurance cash values can be accessed via withdrawal privileges and policy loans
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Life insurance policy withdrawals and loans are not currently taxed as income to the policy holder (if structured properly)