Retirement Planning
You are likely to have many personal reasons for having a life insurance policy, however, retirement planning may not have been considered. Retirement plans typically involve 401(k) plans, IRAs, mutual funds and a variety of other investments, but protecting those investments is critical.
A life insurance policy ties into retirement planning nicely because it can financially protect your spouse from the retirement savings that will be lost as a result of your death, as well as provide a supplemental source of income.
Plan for your retirement with a life insurance quote!
According to the Federal Interagency Forum on Aging-Related Statistics, 2000, "The older population is expected to double over the next 30 years to 70 million by the year 2030. Over the next 50 years, the population age 85 and older is expected to grow faster than any other age group." With statistics like this, you may be wondering if you are doing enough planning to live comfortably through your retirement.
Retirement Planning Objectives
The website for the Life and Health Insurance Foundation for Education (LIFE) provides three objectives for retirement planning:
- Prevent your retirement plans from dying when you do
- Supplement your retirement income
- Preserve your estate assets for your survivors
These basic objectives should be kept in mind during your retirement planning because if you have spent your working years saving to enjoy life after retirement, you will want to protect your savings. If you die prior to retirement, your family would be without both your income and any retirement savings.
Cashing Out Life Insurance Policy
During retirement, you may want to surrender your policy and use the cash value to supplement your retirement savings. Additionally, you may want to consider selling your policy to a third party - for more information, visit the page on life insurance settlements.
Supplement Your Income with Life Insurance
Supplemental life insurance can be an effective way to generate a tax-free cash flow during your retirement. With deficits in social security and the general trend towards living longer lives, you may not have enough retirement funds available in your traditional investments. In this planning scenario, supplementing your income with life insurance is an excellent choice because a policy generates tax-deferred cash value that can be borrowed against.
Life Insurance to Fund Estate Taxes
If your estate is over $2 million, a life insurance policy provides additional money to your beneficiaries to pay hefty estate taxes. If your estate is less, the payout from your policy can provide additional financial assistance to your family.
Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.
|
