I have established a life insurance policy as a retirement planning vehicle. How do I
access my money at retirement?
After you retire, there are several ways to turn the built-up value of your life insurance
into cash. Here are some of your options, from the National Network of Estate Planners,
Denver: 1. You can withdraw your "basis" free of tax. Your basis is the amount
of premiums you paid, less any withdrawals you have made. 2. You can take a policy loan.
Loans are not generally taxable because they are seen as an advance of the death benefit.
3. You can combine both techniques. Often, a combination of withdrawing your basis down to
zero and then borrowing the remainder offers the best method of accessing your life
insurance cash value at retirement. You'll probably want to discuss your options with a
financial planner or similar professional.