money. Roth IRAs are tax-free with two exceptions: distributions become subject to taxes and penalties if the account is owned less than 5 years or when made to someone under age 59 ½. Neither limitation applies to life insurance. Also, not everyone may use a Roth IRA. The IRS restricts participation based on annual income. Some people who want to contribute may not be able to. Life insurance contracts have no such restrictions. Contributions to cash value life insurance contracts may be withdrawn tax-free, and the gains in the contract may be accessed tax-free through policy loans. Typically, no interest or principal payments are made until the death of the insured, when the entirety of the loan is repaid in a lump sum using a portion of the death benefit proceeds. People should compare projections of after-tax retirement income when evaluating Cash Value life insurance and Traditional and Roth plans to assess which maximizes after-tax income in retirement. Term life insurance alternative, for example when a policy owner wants to use interest income from a lump sum of cash to pay a term life insurance premium. An alternative is to use the lump sum to pay premiums into a UL policy on a single premium or limited premium basis, creating tax arbitrage when the costs of insurance are paid from untaxed excess interest credits, which may be crediting at a higher rate than other guaranteed, no risk asset classes (e.g. U.S. Treasury Bonds or U.S. Savings Bonds). Whole life insurance alternative, where there is a need for permanent death benefits, but little or no need for cash surrender values, then a current assumption UL or GUL may be an appropriate alternative, with potentially lower net premiums. Annuity alternative, when a policy owner has a lump sum of cash that they intend to leave to the next generation, a single premium UL policy provides similar benefits during life, but has a stepped up death benefit that is income tax-free. Pension maximization, where permanent death benefits are needed so an employee can elect the highest retirement income option from a defined benefit pension. Annuity maximization, where a large non-qualified annuity with a low cost basis is no longer needed for retirement and the policy owner wants to maximize the value for the next generation. There is potential for arbitrage when the annuity is exchanged for a single premium immediate annuity (SPIA), and