Retire with Tax-free* income?

Is This A Real Thing?

Taxes On Retirement Income: Tax-Free* Options?

Do you have to pay taxes on your retirement income? You could potentially get income tax-free* with the correct strategy. For example, a properly designed indexed universal life (IUL) insurance policy may provide you with certain tax advantages that other products won’t.


An IUL can allow you to:

  • Reduce taxes on retirement income
  • Potentially increase your retirement income
  • Protect your savings from loss

Life Insurance and Taxes on Retirement Income

Life insurance is generally not well known as a source of retirement income.

It’s probable that, as far as you know, all that it does is provide a death benefit. However, certain life insurance policies allow you to take an income for them while you are still alive. And, importantly, life insurance products don’t apply to the same tax rules as more traditional retirement vehicles. There are certain conditions that apply to all policies. Contact us to learn more about them.

Can You Retire With an IUL

Sonoma Financial can help you decide if an IUL is the right choice for you. We can evaluate your current strategy, and help you discover potentially better options. Are the products we offer right for you? There are questions you can ask yourself to determine this.


The following questions are good places to start:

  • Do you think taxes will rise in the future?
  • Is there any way you can compensate for this?
  • Will your beneficiaries have to pay taxes?
  • Is it better for you to pay taxes now, or potentially higher ones later?
happy senior couple high fiving taxes on retirement income

Discover Your Options

IULs offer a number of benefits. Obviously, you can’t know for sure how future tax rates affect your retirement. But there are cautionary steps you can take. An IUL insurance policy might be a strategy worth looking into. In many cases, an IUL can help retirees feel more confident in their strategy. Their principal is safe from the ups and downs of the stock market, and they’ve lessened the burden of taxes on their retirement income.

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