In addition to providing your family with financial protections and peace of mind, life insurance can actually help you make the most of your retirement. Here’s how!
Protecting Your Assets
When you’re retired and less likely to encounter accidental death, you can actually use your life insurance policy to still have some additional income to draw from. The way this works is how your policy is structured and aged. If you have permanent life insurance, you have the right to either withdraw or borrow cash value from the account which you can use for emergencies, home repairs, or even investments. This will help you avoid drawing from investments to let them recover or grow. Bear in mind that doing this will lower your death benefits if you don’t repay the money, but if you plan around this, you can easily restore the money to ensure your full death benefits are intact.
Depending on your policy credentials, your life insurance might also come with long-term benefits for your personal care. Therefore, you can save on medical expenses and use the extra money to maintain your assets and investments.
More Advantage of Retirement Pensions
If you and or your loved one receive a pension as a part of your retirement, life insurance can help supplement and relieve this crucial benefit. Again, you can use or borrow from your policy’s cash value, so this option is great for covering expenses that will heavily impact your pension, allowing you to enjoy more of your payment as a whole. If your partner doesn’t have a pension, your policy can relieve some of the pressure and stress of living with only a single pension. Life insurance will help you save and enjoy your money without the worries of running out.
Secure Your Legacy
When you pass away, your life insurance policy can help you leave a major financial legacy to your children and relatives. The previously mentioned ways your life insurance can help you save money are a major way to secure your overall accumulated wealth for you to pass on. There’s also the policy itself. Your life insurance value can be used to pay estate taxes to help secure your full assets to surviving relations. Additionally, the policy proceeds can also be inherited directly to those whom you will. Beneficiaries can receive a lump sum worth the remaining value of the policy. While this money will be taken into account as part of the estate tax, the value is transmitted to the inheritor free of income tax!
Seek Professional Assistance
If you’re interested life insurance, our team at Freedom Insurance Agency is ready to help you explore your options. Our goal is to help you build the best insurance policy for you, your family, business, and legacy for the future.