Many soon-to-be retirees don’t consider life insurance as an essential part of a solid retirement plan. That’s a pretty sizable mistake.
A life insurance policy is more than a way to financially protect families after the death of a breadwinner. If properly utilized as a part of a retirement income plan, they have several other benefits.
Transfers Wealth To Heirs
With a life insurance policy in place, you’ll ensure that your assets are successfully transferred to future generations. Life insurance death benefits tend to be free of income tax, and even free of estate tax in some cases (if properly deployed).
For families that own businesses, life insurance offers an effective way of equalizing estates when illiquid assets are involved. For family members or heirs who opt out of running the family business, life insurance makes it easy to receive an equivalent cash amount.
Provides Access To Cash
For people who feel that they don’t need comprehensive coverage, they can opt to access the cash value of a permanent life insurance policy. This can help them fund their retirement.
If you do go for this option, you’ll be paying premiums in the years that you work. You can then use it as a source of retirement income through policy loans and/or withdrawals that utilize the cash value of the plan.
Supports a Surviving Spouse
You don’t want to make life difficult for a surviving spouse after your death. They should be able to pay for expenses and debts with relative ease. Funerals easily cost several thousands of dollars. Moreover, your spouse will need the finances required to make mortgage and other possible debt payments.
Simply knowing that your spouse and family will receive the death benefits of life insurance to cover these expenses will help you spend your retirement in peace.
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If you require affordable retirement life insurance FL, final expense insurance FL services, or term life insurance in Pinellas County, Broward County, Miami-Dade County, Palm Beach County, Hillsborough County, and elsewhere in Florida, get in touch with us for a free quote! Or call us at (800) 381-1245.