Unlocking the Financial Benefits of a LIRP: Life Insurance as a Retirement Strategy
When most people think of retirement planning, they often focus on traditional vehicles like 401(k)s, IRAs, and Roth IRAs. While these are excellent ways to save for the future, there’s another lesser-known yet equally valuable option to consider—Life Insurance Retirement Plans (LIRPs). LIRPs can be a powerful tool for retirement, offering a range of financial benefits that make them worth considering as part of a comprehensive retirement strategy. What is a LIRP? A Life Insurance Retirement Plan, or LIRP, is a type of permanent life insurance—typically whole life, universal life, or indexed universal life insurance—that offers both a death benefit and a way to accumulate tax-deferred savings. Unlike term life insurance, which only provides coverage for a specific number of years, permanent life insurance covers the policyholder for their entire life, as long as the premiums are paid. One of the main advantages of a LIRP is its ability to build cash value over time, which can be acces