Whole Life Insurance As Retirement Vehicle
Life insurance is being used more and more by seniors as a source for retirement income and finding this extremely valuable. There are numerous forms of life insurance that have a cash component making them have a "cash value". Since there is a build up of cash within the contract, the funds can be used as a potential source of retirement income if invested wisely. Prudential discusses the different types of policies that can be beneficial towards retirement financial planning on their website.
Whole life insurance is a type of permanent life insurance that is designed to last a lifetime. In general, premiums are much higher and they have a cash component making them a good choice for retirees. Permanent life insurance allows the owner to tap into the cash value through a policy loan or by cancelling the policy altogether. This cash can provide income in retirement when you may need it most. It's important to have retirement savings separate from life insurance, but this can be an added perk that provides possible cash in addition to life insurance to protect your family if you were to pass away unexpectedly.
These type of life insurance policies can help guard against possibly outliving your retirement savings by giving policyholders an additional source of income. With the future of social security income unknown, this is a great safety net that will come in handy. This cash can be extremely beneficial as the costs of healthcare and housing continue to rise. If you need any medical assistance in your old age, or you need a nursing home, extra cash will be required. This is something to consider as you decide which type of policy fits your individual situation. Many people do not even consider life insurance as a means to saving, but it's a reality that could prove to be extremely helpful. Talk with a financial expert about what makes sense for you and your family and take your time making the best decision that will payoff in the end.