Setting yourself up well for retirement starts early on, so thinking ahead is important. While life insurance is primarily designed to help you recover financially if you lose a loved one, the cash value portion of a whole life insurance policy can be used to help save retirement income.1 Aflac offers whole life insurance for individuals with cash value to help you meet your retirement savings goals. Let’s dive deeper into what a life insurance retirement plan (LIRP) is, how LIRPs work, and who should get this type of retirement plan.
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A life insurance plan, or LIRP, is a permanent life insurance policy with a cash value portion that accumulates savings over time.1 Permanent life insurance lasts a lifetime and also has a standard death benefit that can help loved ones cover expenses such as funeral costs, outstanding debts, and estate taxes.2 Keep in mind that a LIRP is not meant to replace a standard retirement plan, like an IRA or 401(k).1 When someone is considering a life insurance retirement plan or LIRP, they are usually referencing a permanent life insurance plan.
When you pay premiums for a life insurance retirement plan, part of that payment is put into a savings account known as the cash value. This savings account can grow over time, tax-deferred, at a pre-determined interest rate.1 There are a few different ways this cash value can allow you to use life insurance for retirement benefits:1
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Get StartedThere are a handful of situations where a life insurance retirement plan can be especially beneficial:
Aflac offers whole life insurance for individuals that can help you reach your retirement goals. Our life insurance policies have comprehensive coverage that is designed with your needs in mind. Chat with an agent about our coverage options and get a quote today.
Get StartedYour life insurance policy can help fund your retirement. Learn more about what life insurance plans you can use for retirement planning and how to choose the right policy for you.
Life insurance for seniors can help you protect the ones you love. Find out more about affordable life insurance options and get a quote from Aflac today.
1 Policygenius - Life insurance retirement plans (LIRP). Updated August 24, 2023. Accessed February 13, 2025. https://www.policygenius.com/life-insurance/life-insurance-retirement-plans/.
2 Investopedia. Permanent Life Insurance Definition. Updated June 21, 2023. Accessed February 13, 2025. https://www.investopedia.com/terms/p/permanentlife.asp.
3 IRS.gov – 401(k) limit increases to $23,500 for 2025, IRA limit remains $7,000. Updated November 1, 2024. Accessed April 22, 2025. https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000.
Content within this article is provided for general informational purposes and is not provided as tax, legal, health, or financial advice for any person or for any specific situation. Employers, employees, and other individuals should contact their own advisers about their situations. For complete details, including availability and costs of Aflac insurance, please contact your local Aflac agent.
Aflac coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, Aflac coverage is underwritten by American Family Life Assurance Company of New York.
Aflac life plans – A68000 series: Term Life Policies: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68200, A68300 & A68400. In New York, Policies NY68200, NY68300 and NY68400. Whole Life Policies: In Arkansas, Idaho, Oklahoma, Oregon, Texas, Pennsylvania & Virginia, Policies: ICC1368100. In Delaware, Policy A68100. In New York, Policy NYR68100. B60000 series: In Arkansas, Idaho, Oklahoma & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Not available in Delaware. Q60000 series/Whole: In Arkansas & Delaware, Policy Q60100M. In Idaho, Policy Q60100MID. In Oklahoma, Policy Q60100MOK. Not available in Virginia. Q60000 series/Term: In Delaware, Policies Q60200CM. In Arkansas, Idaho, Oklahoma, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C. Not available in Virginia.
Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (NAIC 92908).
In AR, DE, ID, OK and VA: Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Aflac Final Expense policies are not available in New York.
Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY, VA or VT. Benefits/premium rates may vary based on state and plan levels. Optional riders may be available at an additional cost. Policies and riders may also contain a waiting period. Refer to the exact policy and rider forms for benefit details, definitions, limitations, and exclusions.
Aflac WWHQ | Tier One | 1932 Wynnton Road | Columbus, GA 31999
Aflac New York | 22 Corporate Woods Boulevard, Suite 2 | Albany, NY 12211
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