By Prince Gandomessi
When you’ve served your country—or supported someone who has—you know the value of structure, planning, and being ready for the unexpected. But when it comes to retirement planning, a lot of military families don’t know about one of the most powerful, flexible, and underused tools available: the LIRP.
That stands for Life Insurance Retirement Plan. It’s a tool that combines long-term savings, tax-free income, and protection for your family—something most traditional retirement accounts just don’t offer. This isn’t about guessing what the market will do. It’s about having a plan that works no matter what.
Here’s how military families can get started, using this simple 5-day blueprint.
A Life Insurance Retirement Plan is a specially designed permanent life insurance policy. Unlike basic insurance, this plan builds something called cash value over time. That cash value grows steadily and can be accessed while you’re still alive.
It’s not like the life insurance that comes with your military benefits. This is a private plan that you own, not one that goes away when you leave the service or change jobs. And it’s much more than death protection—it’s a retirement planning tool.
Most people save for retirement through accounts like a 401(k) or TSP. Those are tax-deferred, meaning you’ll pay taxes later, often when you can least afford it.
An L-I-R-P, when set up correctly, allows your money to grow tax-free. And later, when you’re ready to use it, you can access it without paying income tax. That kind of advantage matters when you’re trying to stretch your retirement dollars further.
Military life is unique. You move often. Jobs and income can change. And retirement isn’t always as simple as staying 20 years.
An L-I-R-P gives you something that stays with you, no matter what. It’s portable. It’s flexible. And because it isn’t tied to your employer or the government, you’re always in control.
That’s a big deal when life doesn’t go as planned.
You don’t need a lot of money to start. Many families begin with $100–$300 a month. The key is consistency—not perfection.
A licensed professional can help you structure the plan properly, so you avoid tax issues and get the most growth over time. The more efficiently it’s built, the more value it delivers later.
When you’re ready to retire—or need funds for an emergency—you can access your money through policy loans. These are not considered taxable income. You don’t have to worry about penalties or required minimum distributions.
And through all of this, your life insurance protection is still in place—so your family is covered too.
Final Thought
Military families deserve more than just basic benefits. You deserve options. You deserve control. The L-I-R-P isn’t a magic bullet—but it is a powerful, proven strategy that can help you build lasting, tax-free wealth and protect the people you love.
If no one has ever explained this to you, I hope this guide opened the door.
You don’t have to figure it all out today. You just have to take the first step.