For many, the thought of life insurance brings about the security of knowing that your loved ones will benefit from it once you are dead. What a lot of people don’t know however is that life insurance can benefit you while your still alive and in fact can become part of your retirement strategy.
Life insurance can an additional way to help pay for retirement, something especially worth knowing if other investments go awry or a pension is non-existent. You may be surprised to know that your life insurance policy can help handle expenses during your retirement. While most people consider life insurance to be only a death benefit, it can be much more.
Life insurance for the most part is used as a death benefit and a person pays premiums into a permanent life insurance policy with the intent to provide a death benefit as well as cash-value accumulation for as long as the policy remains in force. Well suppose you reach retirement and you’ve had a change of heart concerning the way you think about that death benefit, you can still use that life insurance money. You can withdraw from the insurance policy without paying taxes. Usually, you can withdraw up to the amount that you paid in premiums over the years.
But that’s not the only advantage with a life insurance policy. Unlike an IRA, there’s no limit to how much you can contribute into it. There are limits with IRAs which may not meet your expectations of growth over the years. With a life insurance policy, you can contribute as much as you want and structure it to help with your retirement plans.
There’s another thing to think about. If you die and you leave your beneficiaries the money you’ve accumulated in an IRA, they have to pay taxes on it. But the beneficiaries of a life insurance policy don’t have to pay taxes.
Talk to an agent and find out more on the benefits of life insurance.
