Life Insurance: Why No Other Retirement Investment Can Compare

Life insurance, similar to the right annuities in your retirement investment portfolio, can greatly supplement your retirement income.

I don't know if you're aware of this little known fact. But did you know that of all the investments you may have in your portfolio, life insurance is the most ideal product you can have for your retirement? Why do I say that?

The answer is simple. It is the only investment that not only lets your money grow tax-free, but also lets you access it tax-free. And, should you ever pass away (no one gets outta here alive), its entire value is transferred to your beneficiaries tax-free (no matter how large the sum).

The financially savvy have been using this strategy for years to reduce the tax liabilities on their estates. Furthermore, they have also found a way to turn this product into a liquid fund they can use at will, (yes, while they are alive) for anything at all including supplemental retirement income.

Unfortunately, most people look at this investment as an unnecessary expense (up until they need it and can't get it). The financially astute, however, use it as the ideal investment product for wealth management and asset protection.

In addition to its tax-advantaged status, your creditors can never get at the proceeds if the beneficiary is your children, a trust, or your spouse (unless you specifically pledged your insurance contract as a guarantee or your spouse or the beneficiary was also responsible for the claim in question).

Investment grade life insurance contracts are one of the few recommended vehicles to complement your home equity separation strategy for wealth building.

If your investment portfolio doesn't contain this product, you would be wise to find out why the financially savvy are turning to this type of investment for tax-favored, long term savings and financial asset growth.

Before you sit down with your financial advisor, however, I strongly recommend that you pick up Doug Andrew's best seller Missed Fortune at your favorite bookstore, if you haven't had a chance to read it. No other retirement specialist does a finer job at clarifying this little-known concept.

As soon as you're clear on the concept, please be sure to sit with your financial planner to choose a properly structured investment-grade life insurance contract for your investment portfolio.

A word of caution. The first thing you'll want to know about your investment advisor before retaining his/her services is familiarity with TEFRA and DEFRA guidelines. If you get a blank stare or he starts babbling, chances are you may not be working with the right person.

It is absolutely critical for your investment to qualify under those guidelines in order achieve the right results, namely maximum tax-free living benefits you can use in your retirement as well as tax-free insurance benefits for your heirs.

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