What Is an LIRP?
A life insurance retirement plan is a permanent life insurance policy, such as universal life insurance, that combines life insurance coverage with a “cash value” component that you can dip into for retirement money (or anything else you like). LIRPs can’t be term life insurance because term life has no cash value component.
One of the main benefits of an LIRP is its tax advantages. The cash value grows tax-deferred, so you don’t owe taxes on any gains until you withdraw them. Additionally, some policy loans and withdrawals may be tax-free as long as they don’t exceed the amount of money you’ve paid in premiums.