Retirement for the Self-Employed: What Are Your Options?

self employed woman writing down her retirement options

Finding the best plans for retirement is crucial to ensuring a retirement that rewards you for decades of hard work. The best course of action is always to determine a retirement plan that will work for you, not the other way around. 

Self-employed retirement options may seem scarce at first, but there are many options at your disposal. Begus Insurance Group offers a variety of retirement plans that are suitable for any walk of life.

What Are the Options?

There are many traditional retirement plans and some plans that may not be designed for retirement but ultimately provide self-employed people with the funds necessary to experience a fulfilling retirement stage.


Annuities are regulated by the Securities and Exchange Commission (SEC). Insurance agents with expertise in this line of retirement products must be issued a license for securities. Annuities are a safe alternative to traditional 401(k)s and IRAs. Both of which, as a self-employed worker, you may not have access to.

What Is an Annuity?

An annuity is a form of insurance that provides a guaranteed income over a period that is predetermined by the policyholder. During the accumulation (pay-in) period, policyholders allocate funds into their annuity and watch it accumulate value. During the annuitization (pay-out) period, policyholders reap the benefits of their investments.

Are There Different Types of Annuities?

There are four different variations of annuities, all with distinct investment options and pay-out periods. To determine which annuity plan is right for you, contact a Begus Insurance Group agent today!

Permanent Life Insurance

Not only is permanent (whole life) insurance an asset that protects your loved ones after your death, but this asset has a savings component known as cash value. Insurers also have the option of selling permanent life insurance policies on the open market for over four times the worth of a permanent policy’s current cash value.

Cash Value

Whether you own a permanent life insurance policy or a universal life insurance policy, both will accumulate cash value. Cash value accumulates over the life of the policy and with each premium payment. Not only can policyholders use the cash value to reduce policy premiums, increase the death benefit, and add coverage, but they can borrow it at any time. The best use of cash value as it relates to retirement income is a policy surrender for cash value. In this process, the policy will be terminated. Nevertheless, the policyholder will have the benefit of getting their hard-earned cash in hand.


Life insurance settlements are secure ways to obtain instant funding for your retirement. The payout of a life insurance policy settlement can often be four times more than a policy’s cash value during the surrender. If you’ve maintained your policy, paid your premiums on time, maintained good health, and your policy is worth over $100,000, you may qualify for a settlement. The NAIC and the insurer are in charge of monitoring all transactions regarding life insurance settlements.

Kai-Zen Retirement

Kai Zen retirement plans are a form of joint funding retirement that enables the self-employed to accumulate retirement income tax-free. This retirement savings plan utilizes leverage to provide policyholders with exponential growth for their retirement income. The policyholder is only responsible for 30 to 40% of the policy premium whereas the lending service pays the additional 60 to 70%.

How Does Kai-Zen Work? 

The policyholder uses the cash-accumulating facet of their life insurance policy as collateral for their loan. Kai-Zen offers all the privileges of a leveraged account without any drawbacks. As a result, the policyholder will have no worries about higher interest rates, the risks of losses, or complicated paperwork with a Kai-Zen plan.

What Is the Benefit of Kai-Zen?

Kai-Zen policyholders pay their policy premium at a ratio of 3:1. As a result, you get maximum efficiency at a third of the cost of normal retirement plans. For example, if a policyholder invests $100,000 into the plan, they’d reap the benefits of up to $800,000 in tax-free retirement income.

Choosing the Right Retirement Plan

Choosing the best plan for retirement shouldn’t be a hassle. Retirement should be the stage in your life where you can kick back, relax, and enjoy the fruits of your labor. Therefore, at Begus Insurance Group, we aim to provide individuals with the insight they need to make an informed decision. Our licensed and vetted agents will help you determine which retirement plan will best suit your needs. Contact us Today!