Retirement Highlights
By Joel Zimmerman

4 Benefits of Using Life Insurance to Fulfil Your Retirement Goals

There are many benefits associated with life insurance in the ever-changing world of personal finances, and investing in the right plan can be helpful in planning for your retirement. Life insurance can guarantee liquidity when you or your loved ones need it, making it the key differentiator that takes retirement plans from good to great!

If you are the sole breadwinner in your family and have multiple dependents, or if you simply want a secure future for your spouse in case of an early death, your life insurance policy should reflect your retirement goals.

Here are some of the main benefits to consider:

  • Save for Retirement and Replace Your Income

    Term life insurance is the least costly type of life insurance policy. It can be an effective retirement planning tool because it provides basic financial coverage for your family in the event of your premature death. It acts as income replacement for your loved ones, ensuring that they can continue to meet expenses without worry.
    Also, given its low fixed cost, term life insurance helps you build a bigger nest egg for emergencies and future financial security when you’re exploring retirement plans. If you want to explore even greater benefits, look into whole life insurance plans that accumulate a cash value against the premiums, which you can access later in life.

  • Create an Emergency Fund for the Future

    Build an emergency fund from the increased savings you make by investing in term life insurance. Setting aside a pool of emergency funds will prove handy during times of low income or increased expenses. To be safe, contribute 3-6 months of expenses into the fund. This is a good way to start building your nest egg at an early age.
    Many whole life insurance plans, on the other hand, build a tax-deferred cash value against which you can take a loan or make a withdrawal when funds are tight. Depending on what you can afford and how much you potentially need in the future, the huge variety of life insurance policies ensures there’s a perfect fit for everyone.

  • Long-Term Care and Disability Benefits

    Some life insurance plans can be enhanced further with long term care riders, so you don’t have to invest in a separate LTCi (long term care insurance) plan. The cost of medical care and assistance is rising at an astounding rate, and so is the average lifespan of people today. Chances are, you will need care and support at some stage.
    Even before you retire and face the issues that come with age, you may be left unable to work if a serious accident or illness occurs. Don’t rely solely on Social Security since the coverage may not be sufficient to meet your household expenses, in case something happens to you.

  • Invest Wisely and Leave Behind a Legacy

    Life insurance can help you secure retirement funds as well as leave behind a comfortable legacy for your heirs. The proceeds from your plan can be used for investments that help your money grow during your lifetime while the death benefit ensures your family will be taken care of, no matter what.
    Permanent life insurance offers investment opportunities, but it’s best to invest your money independently. This way, you can keep better track of your funds and enjoy the chance to earn maximum returns. Remember, proper financial planning and an effective savings strategy for the future is more than just good sense – it’s a necessity.

With a life insurance policy, emergency savings and some smart investments, you can be well on your way to financial security in retirement. At LifeCentra, we can help you pick the right plan based on what you need. Get in touch with us to understand how life insurance can help you achieve your retirement plans, and make the right choice today!

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