Using Life Insurance for Retirement
January 19, 2023
Some people use life insurance for retirement planning, which can propel their savings when they eventually decide to retire. As you age, you must invest in a life insurance policy and build your retirement savings. These decisions will likely prompt questions, though — for example, can you use life insurance for retirement? Many insurers market life insurance policies by asserting that they are a way to save for the future and potentially save for retirement. While this is true of permanent life insurance, your coverage may not be the best method for retirement planning.
Planning Accordingly and Protecting Your Future
Consider the following factors to discover the best retirement saving strategy.
Determine What Kind of Policy Meets Your Needs
Although life insurance may not be the best strategy for saving for retirement, it’s still a worthwhile investment in your future. You never know what may happen in the future, and you must ensure that your loved ones do not face financial strain if you pass away. A life insurance policy is the best way to accomplish this, and for most people, a term life policy offers sufficient protection. Term life insurance coverage is typically available in 10, 20, or 30-year periods. However, a permanent whole life insurance policy can provide cash value, which can be used for future needs.
Find the Best Retirement Planning Strategy
In addition to securing life insurance, you should also make plans to start saving for retirement. Saving for retirement will give you the resources to live comfortably and cover healthcare expenses that will likely emerge as you age. You should consider savings options such as a 401(k) or an IRA annuity. These types of retirement accounts allow you to invest your savings and enjoy tax-deferred growth.
Plan for Retirement and Protect Your Family
Planning for retirement and protecting your family go hand in hand. It’s an essential investment in your family’s future. Starting a 401(k) or IRA savings account or annuity is a significant investment, too. You can take care of your life insurance and retirement planning needs by connecting with an insurer like 1891 Financial Life. Find the best solutions that suit your budget and help you reach your goals.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our MYGA to support your financial needs no matter what stage of life you’re in. For more information, contact us at (855) 804-7424.
Find out how one policy can make a powerful impact.