Annuities and Life Insurance
Annuities and Life Insurance
Let’s talk about what really matters as you approach retirement: protecting what you’ve built.
If you’re like most people nearing or in retirement, growth still matters—but avoiding losses becomes the priority. That’s where annuities and life insurance strategies can play a valuable role in your overall financial approach.
We’ll help you explore your options for principal protection and determine whether these solutions align with your goals and financial situation.
What Is a Fixed Indexed Annuity (FIA)?
An annuity is a financial product offered by insurance companies, often used to create income or add a layer of protection in retirement.
A Fixed Indexed Annuity (FIA) is a type of annuity designed to protect your principal from market losses while offering the potential for growth. Your earnings are linked to the performance of a market index—so when the market rises, your annuity may earn interest. And when the market declines, your principal remains protected.
This balance of security and growth potential makes FIAs a strong option for those who want more stability without giving up the opportunity to grow their retirement savings.
What Is an Indexed Universal Life (IUL) Policy?
An Indexed Universal Life (IUL) policy is a type of permanent life insurance that offers both lifelong coverage and the potential to grow tax-free cash value over time. When you pay your premium, the insurance company provides a death benefit and allocates a portion to a cash value account tied to a market index—such as the S&P 500.
This means your policy can earn indexed interest when markets rise, while your principal remains protected if markets decline—even during a crash. It’s a strategy that offers both growth potential and downside protection, which can bring added confidence in retirement.
Many IUL policies also offer optional living benefits, such as a chronic illness rider. This feature allows you to access a portion of your death benefit if you’re diagnosed with a qualifying condition—helping cover long-term care expenses and protecting your other assets.
With flexibility, protection, and living benefits, an IUL can play a valuable role in a well-rounded retirement plan.
Benefits of life insurance in retirement may include:
- The cash value of your policy will remain protected, even in the event of a market drop
- Your IUL's cash value growth is based on the performance of an index
- The option to "lock in" what you accumulate
- Fund your policy all at once, or over time (but, an IUL is typically max-funded)
- Tax-free* growth, tax-free* access to your principal & interest, and tax-free* death benefit
- The death benefit can also be received all at once or over time, in a series of payments
- No fines or fees for accessing your cash value before age 59 1/2
- Immediate death benefit, avoiding probate. The death benefit is tax-free*
Want to Explore Your Protection Options?
Schedule a conversation to see if these strategies align with your retirement goals.