How can life insurance support retirement income?

Permanent life insurance policies can accumulate significant cash value that grows tax-deferred. In retirement, you can access that cash value through policy loans — which are generally not considered taxable income — to supplement Social Security, pensions, or 401(k) withdrawals.

This is particularly valuable if you expect to be in a higher tax bracket in retirement, or if you want income that isn't subject to required minimum distribution rules.

When coordinated with other retirement assets, a properly structured permanent policy can improve overall cash flow and tax efficiency. It's not a replacement for a 401(k), but it can be a meaningful piece of a complete retirement strategy.