Life Insurance as a Retirement Income Tool

45 Pages Posted: 26 Sep 2017

See all articles by Russell DeLibero

Russell DeLibero

The American College of Financial Services

Wade D. Pfau

The American College for Financial Services; Retirement Researcher

Date Written: September 23, 2017

Abstract

Given its tax-preferential treatment, careful study is warranted to determine whether life insurance can play an important role in an overall retirement portfolio. This study develops hypothetical scenarios for different types of individuals with varying ages and distribution periods, while using a historical outlook to determine the proper structure of a variable universal life insurance policy. We compare a variable universal life policy to different investment vehicles (both in qualified and non-qualified accounts) on an after-tax basis in order to better understand the potential tradeoff for tax-deferral and insurance fees within the life insurance.

Keywords: Life Insurance, Retirement Planning, Asset Allocation, Retirement Spending

JEL Classification: D14, D81, G11, G23

Suggested Citation

DeLibero, Russell and Pfau, Wade D., Life Insurance as a Retirement Income Tool (September 23, 2017). Available at SSRN: https://ssrn.com/abstract=3041874 or http://dx.doi.org/10.2139/ssrn.3041874

Russell DeLibero

The American College of Financial Services ( email )

270 S. Bryn Mawr Avenue
Bryn Mawr, PA 19010
United States

Wade D. Pfau (Contact Author)

The American College for Financial Services ( email )

630 Allendale Rd
King of Prussia, PA 19406
United States

HOME PAGE: http://www.retirementresearcher.com

Retirement Researcher ( email )

1900 Gallows Rd, Suite 350
Vienna, VA 22182
United States

HOME PAGE: http://www.retirementresearcher.com

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