Life Insurance can be used for Retirement Savings

Tim Cestnick’s article, Life insurance can be a core strategy for retirement savings clearly outlines how life insurance can be used for retirement savings.

While I highly recommend reading the article, here are some key takeaways:

1. Life insurance can used to create a cash flow for the future
2. Premiums can be used to pay for the insurance and to deposit into an accumulating fund inside the policy
3. Insurance policies are paid out tax-free
4. Policy holders can withdraw from the cash value at any time, but get taxed as regular income
5. Policy holders can borrow from the bank and use their insurance policy as collateral (banks will typically lend up to 90% of the cash value)
   1. Loan proceeds are tax-free