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Annuities & Life Insurance
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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.
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Annuity Options
Annuities are insurance products that offer principal guarantees and the opportunity for guaranteed lifetime income, making them appealing for those interested in retirement income strategies. ALEVO, a retirement income and insurance firm focusing on helping individuals, businesses and families protect their futures, offers tailored annuity strategies to help meet diverse financial needs.
The main benefit of annuities is the guaranteed income stream they offer, ensuring you have steady funds during retirement and reducing the risk of outliving your savings. Additionally, annuities provide tax-deferred growth, allowing your money to compound over time without immediate taxation, which can enhance your annuity's overall growth.
ALEVO offers various types of annuities. Income annuities provide regular payments for a set period or for life, offering a level of financial predictability. A fixed indexed annuity is a type of annuity that also focuses on growing your funds, offering you the ability to earn interest tied to the performance of an external market index (limited by the issuing company) while never being invested in the market itself or exposed to market losses.
By Integrating annuities into your retirement plan, where appropriate, can help you prepare for retirement with greater confidence. Annuities offer versatile benefits that can help enhance your long-term retirement approach. Annuities offer versatile benefits that can enhance any financial strategy, ensuring long-term security for you and your loved ones.
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What Is An Index
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.
IUL and Retirement
Could an IUL have a place in your retirement plan? Let’s look at some of the potential benefits. First, an IUL may offer a way to receive tax-free* income. Also, there may even be ways of accessing your money in a non-taxable way. Here’s something to keep in mind: an IUL is not an investment. Instead, it is an insurance product. As such, when you put money into it (your premium), there are different rules that apply to that money. Some of the differences in rules may impact your income or potentially change your tax liability. It’s important to understand these differences.
You may already know that any income you take from your traditional IRA or 401k is taxable. In fact, once you reach Required Minimum Distribution (RMD) age, you must take money out. If you don’t, you are subject to a 50% penalty (current laws as of the time of this writing). However, an IUL does not have this stipulation. Instead, some retirees choose to put some of their money into this type of insurance policy. By doing so, you may create a death benefit for your family as well as potential tax-free* income for yourself.
Working Years Insurance Vs. Life Insurance in Retirement
During your “building” years, you have the income to pay for the basics. Food, shelter, clothing, and basic needs are met via your income. Usually, any additional income goes into savings or is spent on lifestyle. Life insurance during this time of your life serves a specific purpose: protecting income if something happens to you. However, in retirement, things change. While you may still need income for basics, you no longer have employment income to cover this.
Other concerns may arise in retirement as well. For example, maybe you have excess savings and don’t want to risk it in the market. Or, perhaps you are looking for different ways to create a legacy for your loved ones after you’re gone. You may also be thinking about tax implications more as you approach retirement. For these reasons and more, ALEVO is here to serve you. Whether you want a second opinion or simply want to know more about options for life insurance in retirement, we’re happy to help.
Learn the Benefits: Life Insurance In Retirement
Here’s a partial list of ways an IUL may be helpful for some retirees:
Cash Value of IUL is not at risk of loss due to market conditions
Cash value increase uses an index
Each year, you can “lock in” your cash value increase
Choice of index or indexes that link to your IUL
Potential tax-deferred income or non-taxable access to money
Premium may be paid upfront or over time
Possible way to use some of your money before age 59 1/2
Additionally, an IUL may have some benefits for leaving your legacy:
Death benefit is more than premium
Current laws do not tax beneficiary death benefit income
Probate unnecessary – money goes directly to loved ones
Choices for how your beneficiaries receive the money
Death Benefit has the potential to increase over time
Possible use of IUL for chronic or terminal illness, with stipulations
Contact Info
CA Phone: +1 424-436-3963
ID Phone: +1 208-296-6058
Our Locations
- 520 Broadway Suite 200
Santa Monica, CA 90401
- 3500 West Olive Avenue Suite 300 Burbank, CA 91505
- 3610 Central Ave Suite 710 Riverside, CA 92506
- 800 W Main St, Suite 1460
Boise, ID 83702
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Disclosure & Disclaimer
We are not affiliated with any educational or government agency. This material is for informational purposes only and is not intended to be a solicitation for or offering of any product or investment. We do not provide investment, tax, or legal advice. Always consult with your own qualified advisors regarding your individual situation. Insurance and annuity products are not suitable for everyone. They involve fees and charges, including potential surrender penalties. Optional benefits and riders may involve additional annual costs. Life insurance requires medical and often financial underwriting to qualify. Loans and withdrawals from life insurance policies reduce policy death benefits and cash values, and may cause the policy to lapse or require additional premiums to remain in-force. Annuity withdrawals are subject to ordinary income taxes, and may incur a 10% IRS penalty if taken before age 59½. Product features and availability vary by state. Fixed indexed life insurance and annuities are not direct investments in the stock market or any index. The interest credited may be linked to the performance of an external index, but the contract does not directly participate in any index or equity/fixed interest investments, nor are you buying shares in an index. Crediting is subject to limits set by the issuing company, such as caps, spreads, and participation rates. Long-term care riders on insurance or annuity products are not a replacement for traditional long-term care insurance. Guarantees are backed solely by the financial strength and claims-paying ability of the issuing company. The offer and sale of insurance products may only occur in states where the agent is licensed and the product is approved for sale. Investment advice relating to securities may only be provided by a properly licensed individual through a licensed affiliate entity, unless otherwise exempt. Comments about past performance should not be construed as a guarantee or assurance of future results. This website may include concepts with legal, accounting, and tax implications. We do not provide specific legal or tax advice, nor do we promote, market, or recommend any tax plan or arrangement. Consult a qualified professional for guidance. No representation is made as to the accuracy or completeness of the information provided here or through any external links. Visiting this website does not create an agent-client relationship.
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