If you are one of the millions of U.S. persons with a permanent life insurance policy (or are considering a permanent policy), you may do so primarily to protect your family.But over time, many of your financial obligations may have ended.At that time, your insurance policy will be renewed and become a powerful tool to make your retirement life safer and more pleasant.
Permanent life insurance offers you retirement options in 3 unique ways:
1 it can help you avoid the risk of excess assets.The structure is correct and your policy can provide supplementary retirement income through policy loans and withdrawals.If the market is sluggish, there is a policy to learn from that to ease the pressure on investment accounts and give them time to rebound.Some policies may also offer options for long-term care benefits.You can also decide at any time to annualise the policy and convert it into a guaranteed source of lifetime income.
2 it maximizes pensions.Although traditional pensions are rapidly fading out in the United States, those who can still rely on these benefits often face the choice between a higher single life insurance benefit and a lower option that also covers the amount of surviving spouse.Life insurance can supplement the income of the surviving spouse, so that the husband and wife can enjoy a higher single pension together.
3 it makes it easier to leave behind.According to the Wall Street journal, permanent life insurance is “a very useful and flexible real estate planning tool”, often used to transfer assets to family members.Policy income is usually tax free and paid directly to your beneficiary in cash in one lump sum, avoiding a probate and uncle Sam.Your insurance policy can also be used to pay estate taxes, ensure continuity of the family business, or leave a legacy for a favorite charity or institution.
If the market is sluggish, there is a policy to learn from that to ease the pressure on investment accounts and give them time to rebound.If you do wish to tax the estate, you can even establish a life insurance trust that transfers wealth to heirs outside the estate, usually without estate and income tax.
