Cash Value Life Insurance designed as a Non Modified Endowment Contract (non MEC) can generate tax-free collateralized policy loans and withdrawal of basis tax-free as long as the policy is kept in force for the life of the policy insured. Therefore cash value life insurance in this scenario is a life-long buy and hold position, beyond the traditional long-term horizon timeline. There are four types of cash value policies to choose from based on your risk tolerance and product suitability for your financial goals: Participating Whole life, Universal Life, Indexed Universal Life and Variable Universal Life. The crediting methods for each policy type have advantages and drawbacks. You should seek out an insurance professional who understands the rules of engagement to generate tax- free income from these types of cash value polices.  Home Equity Conversion Mortgage (HECM) is an FHA insured HUD program for seniors over age 62. HECM has several options to choose from in using home equity. One of those options is tax-free income from collateralized equity loans from your home, which can generate a lump sum or an annual payout. The payout schedule can be for a limited time as an income strategy to delay Social Security   Read more…