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Flexibility. That’s what you need in your retirement planning because unexpected things will likely happen. A cash value life insurance policy could provide just the flexibility you need and be an important part of your retirement planning.

The last thing we want to happen during our retirement is to run out of money.  To help prevent this our retirement planning needs to accept that 
  1. we could be retired for a long time and 
  2. our savings may need to last for two lives (our own and our spouse’s) .  
Retirement planning needs to have a margin for safety because it’s impossible to know what our world will look like 10, 20 or 30 years after we’ve retired.  We can help protect our retirement by building in a back-up plan, or a Plan B, to protect ourselves and our spouses/partners from developments we never expected.

Cash value life insurance policy can pay out an income tax free death benefit1 to your beneficiary to help strengthen their finances.  And while you’re alive, if you need to, you may be able to withdraw or borrow2 cash values for income tax free funds to help meet financial emergencies or supplement your retirement income. 

Cash value life insurance can be an important component of our Plan B.

Cash value life insurance can help us deal with risks like these:

Reduced purchasing power 
Inflation and subpar investment performance can reduce the standard of living our retirement savings can pay for.

Health crises
Health emergencies can force us to spend many thousands of dollars of our retirement savings.

Living too long
We can’t plan our life spans. The longer we live the longer our savings need to last.

Natural disasters
No matter where we live, we can be affected by floods, tornados, fires, etc.  Damages from natural disasters may force us to spend our retirement savings sooner than we planned.

Tax increases
Federal and state tax rates are at or near historic lows. Governments will likely need more money to provide public services; tax rate increases may reduce how long our savings last.

Creditors’ claims
Some states allow life insurance policy owners  creditor protection.  Because life insurance death benefits are often used to maintain the financial security of spouses and children, many states give life insurance cash values and death benefits significant protection from the claims of creditors. The amount of protection varies from state to state, but the bottom line is that life insurance cash values and death benefits may be reserved for family members even when creditors are owed substantial sums of money. 


Life insurance products are issued by ReliaStar Life Insurance Company of New York (Woodbury, NY) and Security Life of Denver Insurance Company (Denver, CO). Variable universal life insurance products are distributed by Voya America Equities, Inc. Within the state of New York, only ReliaStar Life Insurance Company of New York is admitted and its products issued. All are members of the Voya® family of companies. 

These materials are not intended to and cannot be used to avoid tax penalties and they were prepared to support the promotion or marketing of the matters addressed in this document. Each taxpayer should seek advice from an independent tax advisor.

Neither Voya nor its affiliated companies provide tax or legal advice. Please consult with your tax and legal advisors regarding your individual situation.  
 
1Proceeds from an insurance policy are generally income tax free  and if properly structured, may also be free from estate tax.

2Income tax free distributions are achieved by withdrawing to the cost basis (premiums paid) then using policy loans. Loans and withdrawals may generate an income tax liability, reduce available cash value and reduce the death benefit or cause the policy to lapse.