There are several forms of annuities that can produce guaranteed income, several are important tools in building a retirement income. There is one financial product that is often overlooked, and it has some very unique advantages.

Have you guessed what it is?  If not, the answer is whole life insurance, that old product that has been around for over 100 years.  Why is it valuable for retirement purposes?  For one reason, there is no limit to the amount that can be put into whole life insurance, unlike Individual Retirement Accounts and other qualified plans.  There are also no requirements that distributions be taken at a certain age.  There is complete freedom of when distributions will be taken.

There are tax benefits to Whole Life insurance.  The buildup of value in the contract is tax deferred.  The annual dividends are tax free.  The death benefit is also income tax free and can provide retirement income for a surviving spouse. The tax deferral aspects of the product are attractive, but it also has a unique tax benefit.  Through provisions in the contract, a stream of tax free income can be generated.  This income can be generated for a lifetime.

Selecting a whole life product from a top quality insurance carrier is a smart conservative investment.  Insurers are required to maintain high levels of quality financial reserves, so junk bonds and sub prime mortgages are not risk factors.

We are happy to provide information on quality contracts and companies.  Contact us!