Question: Is it possible for me to withdraw some money from my policy? from Joanne A. in Chicago, IL
Answer: YES!!! Cash value life insurance policies are excellent ways to accumulate monies. The great news is when you withdraw money from them they are considered tax free dollars. During my twenty years of assisting families and business owners, I have established many “Tax Free” Retirement Plans. By purchasing either a whole life or universal life insurance policy and contributing monies on a monthly or annual basis money can build up over time. Families have used this concept to save for children’s college, a daughter’s wedding, a future vacation, etc. Doctor’s and business owners have used this concept for the life insurance benefits along with building cash for retirement. This is a great concept to save money on a tax free basis and be protected with life insurance at the same time.
You can also withdraw money from most annuity contracts. The majority of annuities have a 10% free withdrawal provision that will allow you to take money out in case of emergency before you are ready to begin taking an income stream. Keep in mind you will be required to pay tax on the interest gained when you make a withdrawal.
For additional information on how to establish a tax free retirement or to review your current life insurance and investments please give our firm a call or send us an e-mail.
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