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LIRP – Life Insurance Retirement Plan [Top 10 Pros and Cons]

Fact Checked by Jason Herring & Barry Brooksby
Licensed Agents & Life Insurance Experts.
Insurance and Estates, a strategic life insurance provider composed of life insurance professionals, is committed to integrity in our editorial standards and transparency in how we receive compensation from our insurance partners.
life insurance retirement plan

As experts in life insurance retirement planning, we recognize the growing importance of Life Insurance Retirement Plans (LIRP) as a foundational asset for  financial security and stability. Tapping into our 70+ combined years of life insurance experience, we delve into the world of LIRPs, a distinctive form of permanent life insurance that uses a cash value component to provide retirement income, without fear of losing your principal.

Table of Contents

Key Takeaways

  1. Addressing Retirement Concerns: LIRPs tackle critical retirement planning concerns such as longevity risk, market volatility, cognitive decline, and inflation, ensuring comprehensive financial security.
  2. Benefits of Permanent Life Insurance: LIRPs utilize permanent life insurance policies, like Whole Life or Indexed Universal Life, to provide lifelong coverage, an increasing cash value account, and a growing tax-free death benefit.
  3. Protection from Market Volatility: LIRPs serve as a hedge against market downturns, offering an uncorrelated asset that can supplement income during poor market years without the risk of losing principal.
  4. Cognitive Decline and Long-Term Care: With options for critical illness and long-term care riders, LIRPs provide financial resources in the event of cognitive decline or the need for long-term care.
  5. Tax Advantages and Flexible Access: LIRPs allow for tax-free income through withdrawals and loans against the cash value, providing flexibility and tax-efficient retirement income.
  6. Legacy and Estate Planning: Beyond retirement income, LIRPs offer a tax-free death benefit, ensuring a financial legacy and estate planning advantages.
  7. Comprehensive Retirement Strategy: While not suitable for everyone, LIRPs can be an essential part of a diversified retirement strategy, especially for those looking to mitigate risks and secure tax-advantaged income.

Introduction to Life Insurance Retirement Plans (LIRPs)

The problem: too often people are held captive to the highs and lows of the stock market, which provides much uncertainty and fear, particularly as one nears retirement.

The solution: Provide a safe and stable alternative that you can store your savings in that provides a decent rate of return but with limited to no downside.

There are 4 areas of concern that should be addressed as part of any retirement financial planning:

  • 1. Longevity Risk
  • 2. Sequence-of-Return Risk due to Market Volatility
  • 3. Cognitive Decline
  • 4. Inflation

How permanent cash value life insurance addresses each of these problems.

1. Longevity Risk: A properly designed permanent life insurance policy will last your entire life and provide an increasing cash value account and increasing tax free death benefit.

2. Sequence-of-Return Risk: a volatile stock market is always a concern for someone nearing retirement or at the beginning of their retirement. One bad year and it can greatly effect your retirement plan and how much you can withdraw from your account. Having an asset such as whole life insurance that is not correlated to the stock market can give you an alternative cash flowing asset to draw from in bad market years.

3. Cognitive Decline: Both Indexed Universal Life and Whole Life have riders that provide critical illness and long-term care protection. Also, asset-based long term care products are also available that mix permanent coverage and long-term care insurance into one.

4. Inflation: As mentioned above, a properly designed permanent life insurance policy will last your entire life and provide an increasing cash value account and increasing tax free death benefit. This will help you hedge against inflation.

The life insurance retirement plan, a/k/a a LIRP, is a powerful financial tool that we have seen firsthand provide many benefits and has been used by millions of Americans to protect and secure their financial future. It is a permanent life insurance policy with a cash value component, focused on capital preservation and compound growth, without the fear of loss.

The following LIRP video below provides a real-life case study. The video is focused on retirement planning and offers an excellent breakdown of the benefits of a LIRP powered by whole life insurance.

How LIRPs Work

A LIRP works by taking a properly structured cash value life insurance policy, that is designed for maximizing the cash value growth, and uses it as an alternative source of income in retirement. The cash value provides the tax-free income through withdrawals and policy loans.

A Term life insurance policy is not going to work for a LIRP. Term life insurance provides death benefit protection and does not have a cash value account. And a guaranteed universal life insurance policy will not work as it typically is designed for permanent life insurance coverage but very little, if any, cash value growth.

A LIRP can be created using any number of permanent life insurance companies and policies. You can choose participating whole life, indexed universal life and variable universal life. Each type of life insurance coverage has its pros and cons associated with it.

A whole life insurance policy offers fixed premiums and fixed costs. An indexed universal life insurance policy provides 0% loss protection but potential for higher gains than whole life. And in our experience, a variable universal life insurance policy is not generally recommended for a LIRP due to its inherent volatility and associated risk.

Comparing Different Life Insurance Policies

highlighting different life insurance policies

Understanding LIRP Policy Structures for Cash Value Growth

The two best permanent life insurance policies will be either:

The good news about either of these permanent life insurance policies is they can be properly structured so that the focus is on growing your cash value versus a large initial death benefit. The death benefit can grow over time, but the primary purpose of the LIRP is to act as a retirement plan, providing an alternative income source to other retirement accounts such as the 401k and IRA.

Benefits of LIRPs: Pros Explained

Freedom to Spend Other Assets

A permanent death benefit allows for more flexibility in spending other retirement assets. If you know that your beneficiaries will receive a tax-free death benefit upon your passing, you can freely spend down other assets.

Increased Social Security Benefits

Using your life insurance policy’s cash value as income can delay taking Social Security, leading to higher benefits. For each month you wait to start your benefits, your monthly benefit will be higher—for the rest of your life.

Protection From Losses

For many Americans that had saved with traditional investment strategies, the crash in 2008 was enough to devastate their portfolios. Many saw more than 50% of their portfolio given back to the market in massive sell-offs.

And while it’s true that these Bear markets are typically followed by Bull markets, that isn’t a solid encouragement for those that planned on retiring in 2009 or 2010, who suddenly had to get a lesson on sequence-of-returns risk.

A Guaranteed Floor

Depending on the chassis you choose for your LIRP, either whole life or indexed universal life, a LIRP provides a floor to your investment returns, also known as a guarantee. The guarantee means that you will never have a year in which you take a loss, and depending on your product choice and cash value allocation you may be able to get a guarantee that you’ll never get less than 3 or 4%.

In order to get the guarantee and the safety that comes along with it, you will give up some of the big gains that come in the incredible bull market years.

So you won’t be getting 20% when the market is booming, instead you may only get 10%. But for many that is a price they’re more than willing to pay to get a solid guarantee that they’ll never lose money, and not losing money is the key to true compound interest returns.

Guaranteed Death Benefit

In addition to guaranteed returns, you also get a guaranteed death benefit. The life insurance death benefit is paid to your beneficiaries income tax free.

And the tax free death benefit on a life insurance retirement plan can be designed to increase each year as your cash value grows, so when you do die, your beneficiary receives the maximum death benefit possible. It is also a great way to hedge against inflation, as the purchasing power of our dollar is cut in half every 25 years.

Retirement Income in Life and Replacement Income in Death

In life, your LIRP can be used as tax-free income via withdrawals up to your basis or you can borrow against your cash value. Having a steady stream of tax-free income from your policy is a great way to supplement your retirement income.

In death, a life insurance retirement plan provides income protection in the event that you can no longer provide that retirement income for those you love. In the event of your death, the LIRP provides a tax free death benefit to your beneficiaries.

Long Term Care

And if you have chosen the disability features within a LIRP, you can even provide for you spouse and family if you are permanently disabled, need long-term care or are terminally ill via long term care and chronic illness riders.

While the goal of properly designed Life Insurance Retirement Plan is to provide living benefits for you and your loved ones that last your entire lifetime, one of the key benefits is that it also provides death benefit protection if you die unexpectedly.

The peace of mind that comes from a LIRP is a great advantage, and it’s one reason why the LIRP is sometimes considered a self-completing retirement plan.

Hedge Against Rising Tax Rates

are life insurance proceeds taxableMost retirement strategies are either fully taxed, or tax-deferred. What that means is that you either pay taxes every year on the gains you receive from your investments (fully taxed), or you defer taxes on your gains and pay them when you withdraw your funds (tax-deferred).

The LIRP is not like either of these strategies, it is tax-free.

How can a LIRP be tax-free?

First and foremost the money that you invest in typical tax-deferred investments is paid for with pre-tax money. Whereas with a LIRP you pay for it with after-tax money.

So the government has already been paid to some degree. But what about the gains in your investment – when do you pay tax on those?

With a LIRP you will pay taxes on the gains if you choose to withdraw the money.

However, the gains don’t have to be withdrawn to be accessed. You can choose to borrow from your gains instead of withdrawing, and thereby gaining access to your money tax-free.

What about Interest?

The typical question about borrowing from a LIRP is “If it’s a loan, don’t I have to pay interest?”

The answer is yes, and no.

You do pay interest when you borrow from your LIRP, but due to the fact that you also receive interest from your LIRP, the loan typically ends up being a wash loan. These loans are often called wash loans because you earn what you pay, so it’s a wash.

But what does all this have to do with a hedge and rising tax rates? A hedge just means that something is a barrier, or a protection against, something.

In this case, having a tax-free retirement vehicle means that tax rates can rise to 50% and it won’t impact your retirement because you will be accessing your funds tax-free.

In other words, the tax situation for those with life insurance retirement plans are much more secure and predictable than those with other strategies where paying taxes is involved.

Penalty Free Loans and Withdrawals

With a LIRP, you can access your money without penalty for anything you need it for, including an investment opportunity that may arise. One way to access your money is a withdrawal. You can take out as much as you need up to your basis and not be taxed. Additionally, you can take out a tax-free loan by borrowing against your cash value, producing a tax free income stream.

A 401(k) may allow you to do the same thing, but the access to your money comes at a cost. With a 401(k) plan, if you access your money prior to age 59.5, you will pay a early withdrawal penalty. The penalty for early withdrawals that don’t meet the hardship criteria is 10%, and of course you are taxed on these as well.

Infinite Banking

To those that have never heard of Infinite Banking or Be Your Own Bank, it’s a concept that allows you to use your LIRP to fund various financing endeavors for yourself or others.

In order to be your own banker, you need to use your saved money within the LIRP to finance various ventures, such as purchasing cash flowing assets or investing in your business. You then use the proceeds from your investment to pay back your loan, repeating the process as opportunities arise.

Long-Term Care

Life Insurance Retirement Plans also provide protection against the high cost associated with long-term care. Most LIRP policies provide for accelerated death benefits that can be used if you are diagnosed as terminally ill.

You can even add additional long-term care riders or chronic illness riders for further protection, providing access to your death benefit while you are still alive to cover costs such as nursing and in home care.

High Funding Limit

For those who are below the income requirement threshold for funding a ROTH IRA, there still is the problem of limitations on how much you can put into the Roth IRA. Currently, the maximum you can contribute to a ROTH IRA is $7,000 under age 50 and $8,000 over age 50.

However, there are very high limits on how much you can place into a LIRP, generally a multiple of your income based on your age. And there is no income threshold prohibiting you from funding a LIRP, beyond what you can qualify for. That is why cash value life insurance is referred to as the “Rich Person’s Roth.”

Navigating the Challenges: Cons of LIRPs

When it comes to the negatives of a LIRP there are two primary areas that detractors focus on.  One area is price, and the other is the growth rate. We will address both of these challenges.

LIRP’s Are Too Expensive

When someone says a LIRP is too expensive, we have to ask, compared to what? And the “what” is always term life insurance. The reason this is insincere is because term life only lasts for a period of time, has no cash value, and lacks many of the benefits of a LIRP.

Most financial advisors that are critical of LIRPs like to compare term vs whole life insurance to shock the reader into a state of disbelief.

Often such comparisons will posit the cheapest term insurance to the most expensive permanent life insurance. And the person making this comparison will repeat the financial mantra “buy term and invest the rest“.

The problem is, no one actually does this. And the idea that you can simply self insure is disingenuous.

For one, no one knows when they are going to die. And with a LIRP, you get a leveraged death benefit that pays out income tax free to your beneficiary.

And two, with a properly designed policy your death benefit grows. So that when your number finally does come up you have a much larger death benefit then when you began, creating a legacy that will most likely exceed anything you could have obtained to had you listened to the status quo advice of financial advisors who want to grow their AUM (assets under management).

LIRP’s Slow Growth vs Stock Market

Most financial entertainers bash permanent life insurance because the returns are lower than the stock market’s historic average return. However, consider that a life insurance retirement plan can be used to supplement investment accounts in down years to protect against sequence of returns risk.

Sequence of Returns Risk

When the market drops 20-40% in a year, the last thing you want to do is take money out of the account for retirement income. That is one way a LIRP provides financial protection in retirement, as it offers an alternative source of income when the market has down years.

Average vs Actual Returns

We also need to consider actual returns vs average returns. If you get a 100% return in year 1, and a negative 50% return in year 2, your account balance would be the same as when you started which is an actual return of 0%. But if you add the two years together (100-50=25) you get an average return of 25%. So you see how math can be manipulative and make people think they can get a greater return that what they actually get.

Further, consider how five consecutive years of 10% returns can be easily wiped out by one -40% return. And to make matters worse, you have now lost 6 years.

Keep in mind this is only comparing rate of return, we haven’t even talked about how much of the money you get to keep (taxes), or how easy it is to access your money.

Choosing the Company that Offers the Best LIRP

There are three things to consider when choosing a company for the ideal life insurance retirement plan.

  1. The ideal LIRP is with a reputable mutual insurance company. We believe mutual companies that are beholden to the policy holders are better choices than the companies that only answer to their shareholders.
  2. The ideal LIRP is with a company that has a proven track record of performance. Not all life insurance companies have great returns year after year. We recommend choosing companies that have historically outperformed their competitors, such as companies with a history of excellent life insurance dividends, or higher participation and cap rates.
  3. The ideal LIRP is with a company that is top rated, flexible and allows for a variety of options. You never know what the future holds, and therefore having a life insurance retirement plan with a company that provides financial security and policy flexibility is a huge bonus.

Comparison with Other Retirement Plans

In this section we break down how a LIRP stacks up to other retirement plans such as the 401(k) and an Individual Retirement Account (IRA).

401(k) & IRA

1. Maximum annual contribution limits.

Participants in traditional IRAs and 401(k) plans are only allowed to contribute up to a certain amount each year. With a LIRP, there is no statutory maximum contribution limit.

2. Required minimum distribution (RMD) rules.

When a traditional IRA and 401(k) plan participant turns 73, they are required to start withdrawing at least a certain amount from the account every year going forward. If they don’t, they will face a financial penalty from the IRS. With a LIRP, there are no RMDs.

3. IRS early withdrawal penalty.

With an IRA or 401(k) plan, if you withdraw funds before turning 59 ½, you could incur a 10% “early withdrawal” penalty from the IRS. This is in addition to any taxes that you owe. In contrast, a LIRP does not have early withdrawal penalties.

4. Withdrawals are usually 100% taxable.

Another significant drawback to traditional 401(k)s is that withdrawals are usually 100% taxable. With  a LIRP, withdrawals up to your basis in the policy are tax-free and you can also take out a tax-free life insurance loan, using your death benefit as collateral.

5. No Death Benefit

Most people considering a life insurance retirement plan are not focused on the death benefit but one thing that needs to be said is that a LIRP has a death benefit and a 401(k) and IRA do not. So if you die prematurely, your family is financially protected with a LIRP, but not so much with an IRA or 401(k).


As experienced professionals with backgrounds in Life Insurance and Estate Planning, we at Insurance and Estates firmly believe that a Life Insurance Retirement Plan (LIRP) is a vital component of a robust financial strategy.

Our deep dive into the LIRP concept has shown that, while it may not be the perfect fit for everyone, it offers unique advantages such as tax-free retirement income, flexibility, and financial security. It’s a powerful tool especially beneficial for those seeking to diversify their retirement portfolio and mitigate risks like market volatility and rising tax rates.

We encourage individuals to consider how a LIRP might align with their long-term financial goals and to reach out to us for tailored advice and insights on incorporating this strategy into their retirement planning.

65 comments… add one
  • gary January 13, 2018, 10:48 am

    Can you wrap in supplemental medical, dental, etc insurance, disability, rehab, etc. into a LIRP?

    • Insurance&Estates January 16, 2018, 12:04 pm


      Thank you for the inquiry. We will reach out to you shortly via the contact info you provided.


      • Rk January 25, 2020, 10:37 am

        Interested is in lirp with minimal death benefit and premium. Mainly interested for health riders and tax free access.

    • Jack Maverick October 22, 2018, 3:19 pm

      Very good question from Gary – I hadn’t thought of that. 🙂

  • Mike May 28, 2018, 2:28 am

    Great article. My wife and I started a LIRP last year to supplement about 500k in 401k savings. With 25 years until retirement we set our LIRP up under 10k annual payments to provide a $5000 monthly income at age 65. Thank you for the great read.

    • Insurance&Estates May 28, 2018, 6:23 am


      Happy Memorial Day! Thanks for stopping by. Glad you enjoyed the article.



  • Kurt Kaufman June 9, 2018, 7:20 pm

    I would like more info about creating a Life Insurance Retirement Plan.

    • Insurance&Estates June 10, 2018, 3:40 pm


      Thank you for stopping by and for leaving the request. We will reach out to you shortly with some additional information on LIRPs.



  • Mark June 17, 2018, 9:06 am

    My wife and I invested in a lirp three years ago. We have been hit with financial hardship and when I asked our financial planner about liquidating the lirp or rolling it over into a traditional annuity they told us that the investment could not be liquidated for what we had invested. In fact he told us that none of the one hundred thousand dollars would be refundable back to us which sounds completely insane Does this sound right?

    • Insurance&Estates June 18, 2018, 12:40 pm


      Thank you for reaching out to us. We will be in contact with you shortly.



      • Amulya May 7, 2020, 7:52 am

        I wish you would post the reply here publicly, so that others with same questions can find out the answers.

  • Greg July 24, 2018, 12:01 pm

    I am just learning about LIRP’s, and recently heard about a hybrid model where the interest earned ceiling was higher but had a 1 – 2 percent potential loss floor. Would you explain these further for me?

    • Insurance&Estates July 25, 2018, 1:28 pm


      We sent an email answering your posted question. Please check your inbox.

      Thank you,


  • Cindi August 23, 2018, 9:14 am

    I have money in my IRA that a LIRP firm wants me to take $18,000 out of and put in a LIRP. I am 64. Does this make sense? And how long do I have to keep it in before I can take out?

    • Insurance&Estates August 23, 2018, 1:33 pm

      Hi Cindi,

      Thanks for stopping by. We would be happy to work with you but we cannot give out specific information to your unique circumstances through the comment section of our website. Please give us a call if you would like a complimentary strategy session.



  • TJ Gill September 22, 2018, 10:37 am

    I have some questions and would like to talk to your advisors. Please send me some contact info (Phone # etc.) Thanks

    • Insurance&Estates September 22, 2018, 1:41 pm

      Hello TJ, thank you for your interest. You can e-mail us at info@insuranceandestates.com with any specific questions or contact information or call us at 877-787-7558. Let us know if you’d like to have one of our Pro-Client Guides reach out to you?


      Steve Gibbs

  • Steven Pfeiffer September 22, 2018, 11:56 am

    I have a significant portfolio, my wife and I are 60 and would be interested in what you might have to offer.

    • Insurance&Estates September 22, 2018, 1:45 pm

      Hello Steven, great to hear of interest and thanks for reading. Will have one of our experienced Pro-Client Guides, Jason or Denise, reach out to you soon.


      Steve Gibbs

  • Gisselle October 8, 2018, 9:09 pm

    Interested in opening an LIRP

  • Financial Services Mania November 12, 2018, 11:26 pm

    A cornerstone of financial planning is the recognition that everyone’s economic and life situation is unique. Personalized service is essential when matching clients with the right financial products and services, and you’ll get nothing less from us.

    We will do best Retirement planning with whole life insurance is a powerful strategy that is … “traditional” components of a life insurance retirement plan( LIRP)
    Independent, objective portfolio analysis
    Asset allocation review
    Long-term care cost-benefit analysis
    Estate tax reduction and financial legacy review

    • Insurance&Estates November 13, 2018, 7:16 am

      Yes, everyone’s life and economic situation is unique. There certainly is no “one-size-fits-all” product. Thank you for your insightful comment.

  • Razi Salman February 19, 2019, 5:11 am

    Is there a way for me to avoid interest received with LIRP?


  • Judy Hajek May 20, 2019, 2:31 pm

    I am interested in a LIRP. My husband and I are 55 and 52 respectively. We have 1 mil between our IRA’s and 401K’s, Most of the amounts are in taxable accounts. I’m trying to reduce our taxes in retirement and have read a little about the LIRP. I’d like to know if it makes sense for us at this time in our lives. We both plan to retire at age 60.

    • Insurance&Estates May 22, 2019, 7:03 am

      Hi Judy,

      Thank you for reaching out. Please keep an eye out for our reply via the contact information you supplied.



  • Jonathan May 21, 2019, 11:59 am

    enjoyed the articles. I read the IUL and the LIRD. I had a company i sat with mention a IUL.
    Your articles were very informative.

    • Insurance&Estates May 22, 2019, 7:02 am


      Thank you for the feedback. We appreciate you taking the time to let us know our articles were informative.

      Best regards,


  • Robert Black August 3, 2019, 1:42 pm

    Right, only 2 cons which were dismissed immediately. Sales pitch, never discusses fees or liquidation of assets. Been to a presentation before, get ALL the facts. They will reply, ” We will get back to you.”

    • Insurance&Estates August 6, 2019, 7:18 am

      Hello Robert, thanks for your comment, although I’m not sure exactly what you’re getting at. Are these cons you’ve experienced concerning the LIRP strategy in general or your perception of something that should’ve been included in the article? Not sure where the reference to “sales pitch” or “they” is directed so simply trying to clarify.

      Best, Steve Gibbs for I&E.

  • James September 5, 2019, 12:49 pm

    Question re LIRPs–What are the pros and cons of setting one up for a couple ages 67 and 73?

    • Insurance&Estates September 5, 2019, 4:06 pm

      Hello James, thank you for inquiring. I’ve asked Jason Herring, our top product expert and National Sales Director, to follow up with you.

      Best, Steve Gibbs for I&E.

  • kumar October 7, 2019, 10:48 pm


    I am age 35 and want to know the benefit of buying LIRP as compared to buying a 30 year term and fully fund roth 401K. Don’t they have limit on LIRP contribution?

    • Insurance&Estates October 17, 2019, 7:56 pm

      Thanks for your interest and comment! Jason Herring, our National Sales Director, will reach out to you soon.

      Best, Steve Gibbs for I&E

  • jim cinberg November 29, 2019, 6:30 pm

    Wish to review with one of your reps the virtue of myself, age 73 and still working, who has a DBP but wish to use LIRP to provide a tax free stream so that after the current 2026 tax levels stop to minimize the taxes that I’ll be responsible for with my salary, social security and >2 million in tax deferred with their RMDs. I’ve little need for life insurance per se as my spouse will inherit all and have little concerns as she’ll not have my salary to contend with as a tax burden.

    • Insurance&Estates December 2, 2019, 10:18 pm

      Hi Jim, thanks for your insightful comment. Jason Herring most likely has reached out to you. If not, feel free to e-mail him to schedule a conversation at jason@insuranceandestates.com.

      Best, Steve Gibbs, for I&E

  • Sai December 9, 2019, 2:27 pm

    Can I roll over funds from my ex employer’s 401k into LIRP? What are the tax implications of doing that? I heard about rule 72(t). Is this a viable option?


    • Insurance&Estates December 11, 2019, 6:46 am

      Hi Sai, I believe one of our Pro Client Guides has reached out to you. If not, please feel free to e-mail Jason Herring, jason@insuranceandestates.com.


      Steve Gibbs for I&E

  • Hemant Patel February 8, 2020, 10:38 am

    I am 67 and working full time my wife is 61. We have one son 33 married. We have whole life policies on both our life and a survivor policy. We want to talk to you about LRIP. It looks you are the right person for us to discuss our situation. If you’re available to discuss further let us know. If possible Tel contact.

    • Insurance&Estates February 11, 2020, 8:39 pm

      Hello Hemant, I believe Jason has already reached out to you, but if you haven’t connected yet, go ahead and e-mail him at jason@insuranceandestates.com.


      I&E Pro Team

  • Doris F Abravanel April 17, 2020, 7:51 am

    I would like to know if a LIRP makes sense for me. Can someone get in touch with me please.

    • Insurance&Estates April 24, 2020, 9:18 am

      Hello Doris, we’ve forwarded your request to Jason Herring. If you haven’t yet connected, reach out to him at jason@insuranceandestates.com.

      Best, I&E

  • Todd June 22, 2020, 1:22 pm

    Do you assist in the sale of life insurance policies?

    • Insurance&Estates June 26, 2020, 8:38 am

      Hello Todd, yes we do. Please feel free to connect with Jason Herring at jason@insuranceandestates.com.

      Best, Steve Gibbs for I&E

  • DJ July 7, 2020, 12:37 pm

    Hi I&E Team

    First, a great article, thank you very much for the details.

    A couple of questions, your advice is much appreciated.

    1. I am in the midst of working with an IUL specialist and wondering if you can shed some additional light on MEC (Defined under IRC7702). i.e. when will be policy be termed MEC, with some examples would be helpful to digest the scenario.

    2. Sai asked the same question (I have a significant contribution in previous employer 401K) in the comment section, so I would like to know the answer to the question: Can I rollover funds from my ex-employers 401k into LIRP? What are the tax implications of doing that? don’t know much about rule 72(t) but is this a viable option?


    • Insurance&Estates July 7, 2020, 1:25 pm

      Hi DJ,

      Thanks for commenting and your feedback. If you’re already working with a qualified IUL advisor, he or she should be able to advise you concerning the MEC rules and tax consequences concerning any rollovers. On the other hand, our agents would prefer to work with you exclusively due to the time and effort involved and if you’d like a second opinion on your IUL option, let us know by connecting with Jason Herring at jason@insuranceandestates.com.

      Best, Steve Gibbs, for I&E

  • Dilip August 29, 2020, 9:11 pm

    I am looking to. It a LIRPfor me and my wife we are both 40. I am also looking for a LIRP for my 8 year old if that’s a possibility, can you help?

    • Insurance&Estates September 3, 2020, 12:10 pm

      Hi Dilip, we’ve passed your request to one of our Pro Client guides. If you haven’t yet connected, reach out to barry@insuranceandestates.com.

      Best, I&E

  • SJ February 13, 2021, 8:28 pm

    Does it still make sense to consider shifting into a LIRP with a long-term care benefit from tax deferred accounts at age 72?

    • Insurance&Estates February 18, 2021, 10:36 am

      Hello, that question would be best addressed in a 1 to 1 consultation with one of our experts. To schedule, go a head and e-mail Barry Brooksby directly at barry@insuranceandestates.com.

      Best, I&E

  • Mica February 28, 2021, 4:05 pm

    I’m 29/yo and am not able to use ROTH IRAs due to my income level. I’m looking for alternative tax advantaged/tax free options for early retirement income. Would you recommend using a LIRP to save/invest over a 10-20 year period before starting to pull funds out for early retirement? Thanks

    • Mica February 28, 2021, 4:06 pm

      Can you remove my full name from this? Thanks

      • Insurance&Estates March 3, 2021, 9:34 am



    • Insurance&Estates March 3, 2021, 9:33 am

      Hello, we generally do highly recommend a LIRP with a properly designed high cash value mutual whole life policy for this kind of strategy. If you haven’t yet connected with one of our experts, go ahead and reach out to Barry Brooksby at barry@insuranceandestates.com.

      Best, Steve Gibbs for I&E

  • Robin March 23, 2021, 3:47 pm

    Would like recommendations on a LIRP.

    • Insurance&Estates April 6, 2021, 12:44 pm

      Hi Robin, we have a lot some LIRP resources on our website to educate you and when you’re ready, you can connect with our expert Barry Brooksby at barry@insuranceandestates.com.

      Best, Steve Gibbs, for I&E.

  • Mike Masztal January 10, 2022, 2:54 pm

    My 18 yo daughter is planning on joining the military after high school. She now works part-time and worked full time last summer. She doesn’t spend much. I convinced her to open a Roth which she did and puts in $200/mo. She had $5k in savings and close to $4K in her Fidelity Roth. For sure, we will have Euro-level taxes when she gets to middle age, if not sooner. So, would a LIRP be reasonable to supplement to her Roth given her age and if so, how much should she begin funding the LIRP on a monthly basis?

    • Insurance&Estates January 11, 2022, 9:26 am

      Hello Mike, funding a LIRP can certainly be a great vehicle for your daughter to supplement her Roth. To set up, would need to determine her budget and contributions would be based upon base premium plus paid up additons with a schedule of withdrawals beginning at a certain age. To get started, go ahead and email Barry Brooksby to request a call at barry@insuranceandestates.com.

      Best, Steve Gibbs for I&E

  • James May 9, 2022, 8:27 am

    What is my best lirp for maximum retirement and little to none in death benefit?

    • Insurance&Estates May 11, 2022, 9:53 am

      Hi James, the best next step to get your questions answered is to connect with Barry for individual discussion by emailing Barry Brooksby at barry@insuranceandestates.com.

      Best, Steve Gibbs, for I&E

  • Mike May 29, 2022, 3:48 pm

    I’m retiring in a few days. Is it too late to start?

    • Insurance&Estates June 20, 2022, 9:38 am

      Hello Mike, sorry for the delay as we are moving our main office:)

      It isn’t too late to start. Lump sums with proper designs can aid in quickly establishing cash value growth. To get started, I suggest you connect with Barry Brooksby by emailing him to request a call at barry@insuranceandestates.com if you haven’t ready.

      Best, Steve Gibbs for I&E

  • John Hoxie November 17, 2022, 10:43 am

    What determines the surrender charge? Why is it so much? Hasn’t the company already made enough off the product? Is the surrender charge also deducted if the death benefit is paid?

    • SJG November 22, 2022, 11:42 am

      Hello John, thanks for your question. All UL policies have surrender changes. When you start a policy, the insurance company is counting on premium dollars to be paid. Companies take the premiums and invest them to make money. There is also a cost to the company to start a policy (applications, underwriting, medical exams, medical records, state filing fees, commissions,etc). Surrender charges are a way for a company to get back some of the cost in the early years of the policies if a client walks away from the policy. Most carriers have 10 to 15 year surrender periods, and the charge decreases each year until there is no longer a charge.

      I hope this helps.

      Best, Steve Gibbs for I&E

  • Michael Iliescu November 15, 2023, 9:31 am

    I am trying to find a good LIRP insurance agent in Arizona. My contact info is 480-XXX-XXXX and my cell is 480-XXX-XXXX

    • Insurance&Estates November 15, 2023, 11:37 am

      Hi Michael,

      I recommend that you reach out to Jason Herring by emailing jason@insuranceandestates.com to request a call if you haven’t already connected with him.


      Steve Gibbs for I&E

      Steven Gibbs is a licensed insurance agent, and the following agent
      license numbers of Steven Gibbs are provided as required by state law:

      Resident License; AZ agent #17508301,
      Non-resident Licenses: TX agent #2273189, CA agent #0K10610,
      LA agent #769583, MA agent #2049963, MN agent #40563357,
      UT agent #655544.

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