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The cash value of life insurance policies can help supplement retirement income. It is also helpful to cover final expenses and outstanding medical bills. I am too old for life insurance.
Guaranteed retirement income. ... Most annuities can give you a guaranteed income for the rest of your life. ... there's no annual limit on how much you can contribute, unlike IRAs and 401(k)s. ...
Predictable income: For fixed annuities, the income is predictable, helping you plan your finances with more confidence. Your annuity payments arrive on a set schedule, acting as a sort of ...
The most efficient policy in terms of cash value growth would have the maximum premium paid for the minimum death benefit. Then the costs of insurance would have the minimum negative effect on the growth of the cash value. In the extreme would be a life insurance policy that had no life insurance component, and was entirely cash value.
Heller, 915 F.Supp. 651 (S.D.N.Y. 1996), the court held that the deferred compensation plan was unfunded although the employer would pay the benefits from amounts received under a life insurance policy subject to a split-dollar plan.
Roth IRAs, Roth 401(k)s, and cash value life insurance share features that make life insurance a viable option to supplement or replace Roth retirement plans. All three have these attributes: (1) contributions are paid with after-tax dollars (no income tax deduction), (2) the growth is not taxed, and (3) they may serve as a source of tax-free ...
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