Retiring in today’s economy will require a lot of determination and creativity. When you are considering financial options to help you pay for retirement, you will need to think both inside the box as well as outside the box. If you are looking for retirement solutions that fit your life, Darcy Bergen is here to help. Let’s look at one creative way people are strengthening their retirement options.
When you are considering retirement options and strategies, life insurance is not usually the financial tool that comes to mind. However, more and more people are starting to realize that certain types of insurance can, in fact, bolster up their retirement savings efforts.
Traditionally, life insurance is a financial tool which benefits your surviving family or beneficiaries once you pass away. However, there are certain types of insurance which can provide far reaching financial benefits for you and your family while you are still alive. Very few people view life insurance as a sole method of retirement savings, but rather a nice little addition. Let’s find out how life insurance can help strengthen your retirement strategy.
Whole life or permanent insurance, is a type of insurance product which you pay on indefinitely. This differs greatly from term life insurance which is only in effect for a set number of years. The retirement benefit of whole life insurance lies in the fact that whole life policies build cash value over time. Some whole life policies even allow you the option of earning interest or dividends in a tax-deferred way.
This cash value is a money reserve which could come in handy during retirement. For instance, if you need a large sum of money unexpectedly, this cash value will be available to you.
Any money you cash out of the policy will decrease the ultimate death benefit for your family, though. It is important to remember that a whole life insurance policy should not be your only retirement vehicle. This should be viewed as a backup cash reserve.
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If you are getting serious about retirement planning, you can develop a comprehensive savings plan with Darcy Bergen that will cover your needs. It can be a lot to consider. That is why Darcy Bergen and his staff have developed proven retirement strategies to help you map out your financial future. If you have questions concerning retirement, please give us a call today to set up a consultation.