Life Insurance & Retirement Planning
Retirement Planning Methods
Life insurance can serve many functions in your financial planning. Beyond protecting your family in the event of death, life insurance can help you plan for events such as college, retirement, and unexpected income loss.
A life insurance policy can be an important step in your retirement planning, but it should not be your only step. You should take advantage of any retirement options offered by your employer such as a 401(k) or 403(b) plan. You will also want to talk to your personal financial advisor about other private retirement options, such as the Roth IRA, which can provide tax-free growth for your retirement.
Life Insurance and Retirement
After you’ve examined your options, you may still want to supplement your retirement planning with other vehicles. This is where a whole life insurance policy can be valuable. A whole life insurance policy builds up cash value over the life of the policy in addition to the death benefit provided by the policy. If necessary, you can borrow against the cash value of the policy – in most cases – to help meet your retirement expenses.
Whole life insurance can provide protection for your retirement. The accumulated cash value in a policy can serve you well in volatile market conditions or times where you have unexpected expenses. Replacing income during retirement can be difficult and insurance can help you during these times.
All retirement situations and needs are unique. We encourage you to speak with an advisor who has full access to your circumstances and needs before making any decisions regarding retirement funds.
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