You don’t have to wait until you die to cash in on life insurance. The potential benefits of life insurance for retirement can be used to boost your retirement funds while adequately providing for your loved ones as well. New types of life insurance offer benefits that can be used while you are still alive. These include living benefits, lifetime income options, cash value, and several other benefits. There is even the potential of using a life insurance policy to retire off. Below are just three ways of using life insurance to maximize your retirement:
1. A correctly structured life insurance policy can provide supplemental income after retirement via policy withdrawals and loans to protect you against the risk that you may outlive your assets. Policy withdrawals can help take the pressure off your investment accounts when markets get sluggish, allowing them time to rebound. Certain life insurance policies can also include long-term care benefit options.
2. A life insurance policy can serve as a flexible and useful estate-planning tool to pass on assets to your loved ones. It can also be utilized to ensure the continuation of a family business or pay estate taxes. The proceeds from a life insurance policy are commonly paid in the form of a lump sum directly to beneficiaries.
3. Life insurance can maximize your pension by supplementing your surviving spouse’s income. Normally retirees have to choose between a single life distribution pension amount, and a lower pay out in order to cover a surviving spouse. This way you and your spouse can enjoy the benefits of a higher, single-life pension together.
Our licensed insurance agents can assist you in assessing your current situation and adjust your existing life insurance, or structure a new insurance policy that will help you to achieve better retirement goals.