Retirement Planning

Planning for retirement, whether that’s five years away or 25 years down the road, is something each of us needs to consider. Making smart choices about how much money you save, and what retirement planning savings vehicles you use, can mean the difference between having the income you need in retirement to live the lifestyle you want, or struggling financially. There is no one-size-fits-all solution when it comes to saving for retirement, but if you prefer a product that offers safety and guarantees, you may want to consider the retirement protection benefits offered by annuity products and indexed universal life (IUL) insurance policies.

What Are Annuities?

An annuity is essentially an insurance product. With deferred annuities, the contract holder can accumulate money over a period of years (the “accumulation phase”) by either making an initial deposit and watching it grow, or by making periodic deposits over time. Funds invested in retirement annuities grow tax-deferred. When you’re ready to start drawing on your annuity, you “annuitize” the contract and turn it into an income stream so you receive a series of regular payments each month, quarter, or year.

What is Indexed Universal Life Insurance?

An Indexed Universal Life (IUL) policy is permanent life insurance coverage with both an insurance component and a cash value savings component. The cash value can be indexed to a financial market index, offering policyholders the upside potential that comes with investing in the markets while still retaining the protection of life insurance coverage.

How Can You Use Annuities and IUL for Retirement Protection?

There are many reasons for choosing retirement protection annuities and IUL products. The most common reason many people use annuities is for channeling their savings into a regular income stream during retirement.

Funds from Social Security and pensions may not be enough to allow you to live the lifestyle you want when you retire. Choosing a retirement protection annuity can give you an additional paycheck every month to supplement those other income sources – giving you the funds necessary to travel, pay your expenses each month, buy gifts for loved ones and more.

Similarly, IUL policies offer you the option of accumulating cash inside your life insurance policy – cash that you can use for any purpose.

How Does Retirement Protection Work?

When you purchase a deferred annuity as part of your retirement plan, you enter into a contract with the issuing insurance company. During the accumulation phase, when you’re able to add funds, your funds will grow on a tax-deferred basis. When you’re ready to turn your annuity into a stream of cash, you’ll have various payout options to choose from. An Indexed Universal Life (IUL) policy includes both a death benefit amount and a cash value component. Your cash value account, to which you can make additional payments at any time, can be tied to a market index so you have the upside of investing in the stock market without the financial risk. The first step toward ensuring you have the income you need during your retirement years is to contact The Diaz Legacy. We can help you understand the various products available that will best meet your needs.

Choose The Dannels Agency For Retirement Protection

At The Dannels Agency, we understand insurance and retirement products. Rather than trying to sell you proprietary products, we work with more than 30 insurance agencies to create custom insurance policies and annuity contracts for our clients.

We understand that everybody has a different financial picture, and different goals, so we never take a cookie-cutter approach. We will take the time to fully understand your family’s needs, budget, and concerns so that we can find the perfect fit for you. At The Diaz Legacy, we are fully committed to protecting your life’s journey.

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Whole vs. universal life: Which is right for you?

Features
Whole Life
Universal Life
Premiums
Fixed and predictable for the entire policy term.
Flexible; can be adjusted within certain limits.
Cash Value
Guaranteed to grow at a set interest rate.
Growth is variable and can fluctuate with market rates or investment performance.
Death Benefit
Guaranteed to pay a set amount.
Can be flexible and may be impacted by cash value fluctuations or loans.
Complexity
Simple and straightforward; requires less management.
More complex; requires active management to prevent policy lapse.
Best For
Those who prioritize stability, predictable costs, and guaranteed returns.
People with fluctuating incomes who want more control over their payments and death benefit.

Frequently Asked Questions

What are the advantages of Retirement Protection?

Many of the annuity and life insurance products available through The Dannels Agency come with guarantees that can be invaluable to those concerned about not having enough retirement income from other sources.

The best part is that choosing a product with guarantees does not mean you have to give up the potential for growth in your annuity or cash value life insurance policy.

Most annuities used for retirement protection are “guaranteed issue” products that require no underwriting, so nearly everyone qualifies. Because of the life insurance component of IUL policies, you need to meet the insurance company’s underwriting criteria in order to qualify for the product. Additionally, many IUL policies don’t require a medical exam, which can save you some time overall.
There are fees and expenses associated with any type of retirement planning vehicle, and retirement protection annuities and insurance products are no different. When you work with The Dannels Agency to explore retirement protection options, we’ll explain the fee structure of various products and answer any questions you have to help you make an informed decision.

When you are saving for your retirement, the best time to buy retirement protection through annuities or life insurance is now.

Most people purchase an annuity before they reach retirement age. Annuity products often come with surrender charges for a period of time after making the initial purchase, so it’s important to understand how each policy you are considering treats withdrawals, especially in the early years of the contract.

Because an IUL policy has a life insurance component, the cost you pay will be based in part on your age at the time you purchase the policy. The younger you are, the more affordable the premiums are. This means you may be able to direct additional funds to the policy cash value to be used during your retirement.