Web Content Viewer

Actions

Web Content Viewer

Actions

How Can Life Insurance Help Manage Taxes in Retirement?

Taxes in retirement can impact your cash flow and lifestyle. They can be challenging to prepare for because the future of tax policy is always unknown.

The good news is that life insurance can help add stability and flexibility to your retirement strategy. In addition to providing a needed and valuable death benefit, life insurance can help you manage taxes while potentially creating a tax-free source of retirement income. This can help you diversify not just your assets but also your tax strategy.

Web Content Viewer

Actions

Is Your Retirement Income Rooted in Taxable Sources?

Web Content Viewer

Actions

Web Content Viewer

Actions

Traditional sources of retirement income are usually  taxable

  • Social Security benefits
  • Pensions and employer-sponsored plans
  • Investments including traditional 401(k)s and IRAs, as well as stocks, bonds, and mutual funds held outside of tax-advantaged accounts

Only a few can provide tax-free income in retirement

  • ROTH IRA or 401(k)
  • Municipal bond dividends
  • Life insurance

Web Content Viewer

Actions

 

How Can Life Insurance Help
Reduce Taxes and Enhance Growth Potential?

It can help you prepare for retirement without adding to your tax liability.

Especially if you want to add:

Web Content Viewer

Actions

Stability

Gain the stability of life insurance protection for your family.

Opportunity

You can add life insurance even if you are maximizing your contributions to qualified plans.

Diversity

Life insurance helps diversify your tax strategy.

A potential source of income

Life insurance can add a potential source of income without adding to your tax obligations.

Web Content Viewer

Actions

Life insurance can add flexibility to your retirement planning.
If you choose a policy that offers the potential to accumulate cash value, it can help you in three ways:

TAX-FREE ACCESS
You can access the cash value by taking withdrawals or loans.* Usually, life insurance policy loans are not taxable but are charged interest. You can generally withdraw up to the amount you’ve paid in premiums, tax-free.

You can access any cash value:

Easily

  • For any reason you choose, such as to supplement your retirement income.
  • Without age restrictions or penalties.
  • With no required minimums for tax purposes.

Strategically

  • To help manage the tax bracket you fall into from year to year.
  • To limit or delay tapping into taxable retirement income and/or to delay taking Social Security. Doing this could mean a larger benefit for you and your spouse later.

TAX-FREE DEATH BENEFIT
Life insurance pays death benefits that are usually not taxable as income to your beneficiaries under federal laws. Your spouse or heirs get an income tax-free death benefit and an immediate source of income, perhaps to help offset estate or other taxes.

TAX-DEFERRED GROWTH
You pay no taxes each year if policy values grow. Any cash value that accumulates will do so on a tax-deferred basis.

* Loans and withdrawals could affect policy guarantees and reduce or eliminate the death benefit for your beneficiaries. Income tax free access via loans and withdrawals is available for policies that are not classified as Modified Endowment Contracts (MECs). Loans may be taxable upon policy lapse.

Web Content Viewer

Actions

Gain Control of Taxes During Retirement

Life insurance can help you gain more control of your taxes in retirement through its income tax-free death benefit, potential for tax-free cash value growth, and ability to tap into the cash value, also tax-free.

 

A variable universal life insurance policy is designed to provide a death benefit and offer the potential to grow cash value.

Web Content Viewer

Actions

Footnote

Life insurance is issued by The Prudential Insurance Company of America, Pruco Life Insurance Company (except in NY), and Pruco Life Insurance Company of New Jersey (in NY). Variable universal life insurance policies are offered through Pruco Securities, LLC (member SIPC). All are Prudential Financial companies located in Newark, NJ.

Our policies contain exclusions, limitations, reductions in benefits, and terms for keeping them in force. A financial professional can provide you with costs and complete details.

Please consider the investment objectives, risks, and charges and expenses carefully before investing in the contract and/ or underlying portfolios. The prospectus and, if available, the summary prospectus contain this, as well as other important information. You can obtain a copy of the prospectus here. You should read the prospectus carefully before investing.

It is possible to lose money by investing in securities.

Prudential does not provide tax or legal advice. Please consult an independent tax or legal advisor with questions regarding your personal situation.

For Compliance Use Only:1025944-00003-00

Web Content Viewer

Actions