Welcome back to the blog of Naples Life Insurance & Annuity Advisors. On our blog, we try to cover practical topics for current and prospective clients in the Naples area that can help them reach their financial goals now and in the future. This week we are continuing to discuss the benefits of a life insurance retirement plan also known as a LIRP. Read part one here if you missed it. However, we will briefly recap below.

The Basics of LIRP

In our last blog, we discussed the first two benefits of a LIRP. Like a Roth IRA, a LIRP offers many advantages. However, there are advantages that a LIRP gives that a Roth IRA cannot provide.Those include:

  • No Limitations on Funding – Anyone can contribute to your LIRP
  • Contributions Are Never Capped – You can fund your policy as much as you want

Continue reading part two of your blog series below to learn about additional basic benefits.

Multiple Options

A LIRP gives you multiple options for growing your investment that many other investment options do not.

  • Grow it at a fixed interest percentage
  • Use mutual funds and the stock market to your advantage
  • Rely on an indexing strategy

These options allow you to find a strategy that fits your risk margin and your financial goals to grow your investments tax-free. Typically, you choose the means for growing your investment when you choose the type of insurance policy to purchase.

Tax-Free Income

There is little more that needs to be said other than when you decide to withdraw the cash value of your LIRP, it is tax-free. As history seems to indicate, often the cost of living goes up with time, as well as the amount of taxes that must be paid on your income. Investing in a LIRP protects your investment now and in the future.

Who Should Consider a LIRP?

As we mentioned above, nearly anyone can find a LIRP a viable solution for completing the needs of their retirement plan. However, there are some things to consider before. Those who benefit from a LIRP the most are:

  • Those who can be insured
  • Those with fully funded other retirement options
  • Those who would like additional income during retirement
  • Those that can overfund a policy for at least 10 years
  • Those who do not need to withdraw the cash value of the policy for at least 15 years

If you don’t fit these qualifications, you still may find a LIRP a viable financial strategy. The best way to figure out if a LIRP fits into your financial plan is to speak to a financial advisor. They can help you find a policy that will fit your current lifestyle and your future financial goals as well.

Ready for Prosperity?

Our founder and CEO Chris T. Christensen has built Naples Life Insurance & Annuity Advisors on over thirty years of experience giving him a long-term perspective in regards to the benefits of a LIRP and other life insurance policies. Christensen speaks all over the country, helping those in Naples and beyond find prosperity. If you’re interested in learning more about life insurance and how a policy could help you, visit our website and make an appointment!

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