What are the Pros and Cons of a Life Insurance Retirement Plan (LIRP) ?
Pros | Cons |
Nearly unlimited saving* | Potentially fewer investment options |
Tax-deferred build-up of cash value | Savings potential limited by cost of death benefit |
Tax-free income distributions when properly designed | Taxable withdrawals if not properly structured |
No minimum age requirements to access cash value | May require ongoing contributions |
Tax-free death benefit for beneficiaries | Contributions are not tax deductible |
*With minimum death benefit maintained