A Life Insurance Retirement Plan (LIRP) offers a unique benefit: you can use the cash value of the policy to enhance your retirement income and manage taxable income. This can help you stay in a lower tax bracket and maintain your standard of living during retirement. For retirees on a fixed income, reducing taxable income through a LIRP can be particularly advantageous. Keep in mind that, like other retirement accounts, LIRP investments are subject to capital gains tax.