A Life Insurance Retirement Plan (LIRP) is a unique financial tool that combines permanent life insurance with retirement savings. Unlike traditional retirement accounts like IRAs and 401(k)s, a LIRP offers both life insurance protection and a cash value component.
With a LIRP, the cash value of the policy grows over time based on the policy’s terms. You can even choose to overfund the policy by paying more than the minimum premiums, which helps increase the cash value more quickly. This can be particularly useful if you’ve already reached the contribution limits of traditional retirement plans like IRAs.
A LIRP is an excellent option for those looking to enhance their retirement savings while enjoying the benefits of life insurance coverage.