Life Happens Pro is introducing Insure Your love month for February. What better gift could you give your significant other for Valentine’s Day other than life insurance? Give you and your family the gift of financial and mental security in case the unthinkable happens. Giving the gift of life insurance is something they can take with them for the rest of their life. Here are some ways that life insurance can help you plan for the future.
The biggest thing life insurance offers people is the financial security that families need if the unthinkable happening. An unexpected death in the family is something that no one wants to deal with, and the financial ramifications that come with that can be devastating to any family. Having that life insurance policy as a security blanket is something that everyone, young, old, and in between can feel assured by.
Using life insurance as a final expense can offer key assistance in what is a steep cost to a family who has just lost a loved one. Funerals cost thousands of dollars, and if the person who is bringing in the income were to pass away, that can put a family in a difficult spot. Having that policy in place to protect against the financial hardships a family would be in if that were to happen is a great reason to get a life insurance policy and secure your future.
Cash Value for Retirement
Over time, some life insurance policies, specifically permanent life insurance, accumulate cash value and can be used as a retirement vehicle. Most of us think of saving money for retirement in either an employer-provided 401K retirement plan or individually through an IRA (Individual Retirement Account) or even through annuities. Another tool in the retirement-planning toolbox is cash-value life insurance, the most common form of Permanent Life Insurance. Under Permanent Life are categories such as Whole Life or Universal Life, (i.e Indexed Universal Life.)
Once you are ready for retirement, you can cash out the policy or withdraw in the form of tax-free “loans.” These loans can be spread out over time during your retirement years, say 15 years for example. The tax-free loans are what you use to supplement your retirement income. However, it is advised not to take out too much money in the form of loans. You want the policy to remain in place so that when you pass away the death benefit pays off any loan accumulation and the net difference is paid to your beneficiary tax-free for final expense or estate planning.
In this video, Life and Financial specialist Enrique Torres discusses these permanent life options and how they can positively impact your retirement portfolio.
Life Insurance Questions?
We hope this information on Insure Your Love is helpful.
If you’d like to learn how we can help you plan your retirement, call Empower Brokerage to speak to one of our Life and Annuity experts (888) 539-1633
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