A Life Insurance Retirement Plan, or LIRP, is a specially designed life insurance policy that does much more than just provide a death benefit.
A LIRP is a permanent life insurance plan that simulates many of the tax-free traits of the Roth IRA. A properly funded LIRP can provide large, tax-free, streams of income during the policyholder’s retirement years.
There is no income limit to a LIRP — unlike a Roth IRA, there are no earned income limits. This means high-income individuals can also participate in a LIRP strategy.
In this article, we will take a broader look into how this plan works and see an example of how much tax-free income is possible.