7 Benefits of a Life Insurance Retirement Plan


Many people with life insurance are glad they have it. These people do not possess a policy, but wish that they did. Life insurance is affordable, and it provides peace of mind and assurances. Whether you use it as part of your overall retirement planning strategy or you want to leave your family in good hands in case you pass away, life insurance is one of the best financial products you can buy.

You have car insurance, home insurance, and even credit card insurance. Why not life insurance, too? It might be about time to contact an insurance broker and consider a life insurance retirement plan.

If this is something of interest to you, you should know about the seven benefits of a life insurance retirement plan:

Benefit #1: Life insurance protects your family

When you are 55 with a wife and three children, it is beneficial to have a life insurance retirement plan. If you are in retirement and your kids are out of the house and on their own, it is still a good idea to have life insurance.

Why? You can leave behind a windfall for your significant other or your children and you can ensure your estate pays off any debts or liabilities that you may have had endured in your senior years.

Benefit #2: Life insurance is an investment for the future

Remember, if you own life insurance, you get to keep the premiums when you end the agreement.

That is an important advantage in owning life insurance. You can decide to cash out and then used the accrued premiums to cover your cost of living and all the other expenses you may have accumulated in retirement. This explains why so many people choose to purchase life insurance, even if they are single and in good health – you have a windfall once you check out from the workforce.

Benefit #3: Life insurance has very little risk

Another significant benefit of life insurance is that it comes with little to zero risk. Since you can use life insurance as part of an overall investment strategy, there might be some risk. However, your typical policy comes without any risk at all, and that is a great thing for anybody fearful of the market.

Benefit #4: You can buy term insurance plans

Instead of acquiring whole life insurance, it would be best to purchase term life insurance. If you want to cash out after 20 or 40 years, you can do it with this type of life insurance retirement plan. Whole life insurance makes it a bit difficult to do.

Benefit #5: Add long-term disability insurance to your portfolio

Unfortunately, the older you get, the more expensive your lifestyle will be because of your out-of-pocket health expenses. Whether you are dealing with chronic pain or you have been sidelined due to a deterioration of your mental faculties, it is great to own long-term disability insurance. This way, you can make certain that you are not using your principal to pay for these costs.

It is true that most long-term disability insurance plans only offer a few hundred dollars a month, you can make this money travel a long way. If it means you can touch less of your money, then this is something that can boost your life insurance retirement plan.

Benefit #6: Affordable insurance premiums & high returns

When you are crafting a life insurance retirement plan, you typically find that a plan can start at $250,000 for $250 per year. This seems worthwhile when you first come across the policy, and you immediately acquire the plan. However, you eventually crunch the numbers that $250,000 is not much, and you could certainly afford an extra $500 a month for a $500,000 policy.

Whatever the case, you should also calculate how much you can spend, what your family needs, and perhaps how much cash you will need in 20 years when you have the option of cashing out.

Benefit #7: You have the option to annuity

An annuity is a long-term investment offered by insurance companies. The purpose is to provide a guaranteed lifetime income to ensure you do not outlive your money. So, let’s say you have a $100,000 annuity, you will receive $525 per month in lifetime income. That is nothing to sneeze at when you consider that many retirees will run out of money before they die.

Life insurance is not the sexiest topic to discuss at the dinner table. But it is something that everyone should have, no matter the circumstances. This is a superb tool, whether it is a part of your retirement investment strategy or you have a family and you want to take care of them from beyond the grave. Do your research, get the best rates, and find a policy that is right for you.