Preparing for retirement and managing income during
retirement remains a major concern for millions of Americans. Terms like “the
new face of retirement”, “bridge job” or “working retired” have taken on new
definition as Americans labor past the traditional retirement age and continue
to work into their late 60’s and beyond.
With increasing health care costs, inflation concerns and
managing or reducing current debt, pre-retirees are making tough financial
decisions that will impact their current as well as their future financial
lives and many of us expect to work on average a full decade longer than those
already in retirement.
It is no wonder that many Americans are feeling financially
unstable and are looking for ways to
provide financial protection and future security for their family.
Fortunately, there are a number of strategies that may help
you achieve your retirement goals. If you need a death benefit and have objectives
that include retirement and providing a financial legacy to
your heirs, one possible strategy may include permanent life insurance.
Permanent life insurance can be the “permission slip” to
spend down your assets during retirement without the worry of how to leave a
legacy to the next generation. The life
insurance policy can deliver income tax free funds for inheritance, which means
other accumulation accounts do not have to be conserved for this purpose.
In
addition to the death benefit permanent life insurance provides, there may be unique
living benefits, including the policy’s cash value, that may be especially useful
today. The cash accumulated inside the policy has the potential to be a source
of cash to pay the mortgage or the car loan, improve a home for sale, start a
business, or to supplement retirement income.
The policy loans do not need to be paid back during the policy owner’s lifetime
– any outstanding loan amount, and interest due, will be deducted from the
policy death benefit before it is paid to the named beneficiaries.
Another financial risks which can
deplete even substantial assets in fairly short order is a serious illness. Through
optional riders, life insurance can help address this concern by providing
access to the death benefit, during lifetime, to help cover costs associated
with a terminal, chronic or critical illness
.
These
benefits help make permanent life insurance even more important to families in
the current environment where there is an increased desire for a stable, dependable way to protect loved ones.
Access to the cash value may be available through
loans or withdrawals. Policy loans and withdrawals reduce the policy’s cash
value and death benefit and may result in a taxable event. Surrender charges may reduce the policy's
cash value in early years.
Receipt of accelerated of life insurance benefits may affect
your, your spouse or your family’s eligibility for public assistance programs
such as medical supplementary social security income (SSI) , and drug
assistance programs. You are advised to
consult with a qualified tax advisor and with social service agencies
concerning how receipt of such a payment will affect you, your spouse and your
family’s eligibility for public assistance.
Riders are optional and may not be available in all states. This is not a solicitation of any specific
insurance policy.
