5 Reasons To Own Life Insurance During Retirement
How To Maximize Your Income When You Retire
Owning life insurance during retirement can make your life happier and more productive. Life insurance provides protection for your family and loved ones while allowing you to meet your financial goals, and during retirement that becomes even more important.
Here Are 5 Reasons To Own Life Insurance During Retirement
1. Life Expectancy – Life insurance protects your family if you die too soon.
Do you realize that 70% of all Baby Boomer women (born between 1946-1964) will outlive their
husbands? Not only do women outlive their husbands, they tend to marry men older than them. So,
many widows can expect to be widows for 10, 15 or even 20 years. Women are going to live with
the consequences of whether or not their spouses have enough life insurance.
2. Taxes – Life Insurance protects you from unnecessary taxes.
Do you think taxes will be higher in the future? For most of our parent’s and grandparent’s lives, the
highest federal tax rates have been over 50%. If you think about it, most people have most of their
money tied up in qualified plans like IRAs and 401(k)s, that will be fully taxable at retirement. If you
are putting your hard earned money into one of these plans, you may want to consider your
alternatives, at least the amount that is above your company match (if you get one). With a qualified
plan, as your money grows, so does your tax liability. When you own life insurance, you have
already paid income taxes on your money, so the benefit is tax free as loans and to your beneficiaries.
3. Wealth Transfers – Life Insurance reduces wealth transfers.
Did you know that your heirs will have to be pay taxes on most assets that are left to them? When
you die, your assets can be taxed. This includes your IRA. Life insurance can increase the amount
left to your heirs dramatically, and decrease the amounts that are normally paid to settle your estate
4. Guaranteed Lifetime Income – Life Insurance can increase your spendable income at retirement.
Did you know that when you own permanent insurance it actually increases the value of your other
assets? Take for instance your IRA or 401(k), typically most people are concerned about
withdrawing this money for fear that they will run out. So, they try to live off of the interest.
In this low interest rate environment, this may be hard to do. When you own permanent life
insurance you have options. One option is to use another life insurance product, an immediate
annuity, to guarantee lifetime income. This allows you to spend all of your retirement funds without
the fear of running out of money.
You can maximize your IRA or pension when you own permanent life insurance. In many cases and when structured properly, you may be able to double your spendable income at retirement leveraging the power of life insurance.
“Give me a lever long enough and a place to stand, and I will move the entire earth.” ~ARCHIMEDES
5. Gifting and Charity – Life Insurance allows you to give more and leave a legacy.
Did you know that you can use your life insurance while you’re alive and then leave the benefit to
your heirs or charity? Regardless of your wealth, you can multiply the amount you give with life
insurance. Anyone can increase their ability to give using life insurance.
Recap to Own Life Insurance During Retirement:
1. Life Expectancy
2. Taxes
3. Wealth Transfers
4. Income
5. Legacy
Life Insurance creates LEVERAGE
Whole life insurance is not just about death, but about living and adding value to your life. It can be used as a financial tool to help you achieve success.
Plan your retirement using the power of life insurance and create a legacy for your heirs.
To learn more about how life insurance can help you during retirement, request a financial review: http://legacyinsuranceagency.com/financialreview
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Until next time,
Barry Page, RFC