Retirement planning is a crucial step for everyone, regardless of how far off that golden age might seem. Making smart choices about how much you save and the vehicles you use can significantly impact your post-work life. While there's no one-size-fits-all solution, individuals seeking safety and guarantees in their retirement savings may find significant benefits in annuity products and indexed universal life (IUL) insurance policies.

Why Consider Annuities and IUL for Retirement?

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.

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.

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.

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 Harrison Agency. We can help you understand the various products available that will best meet your needs.

At the Harrison Brokerage, 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 Harrison Brokerage we are fully committed to protecting your life's journey.