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Cape Cod Wealth Strategies
& Insurance Services, LLC

How Life Insurance Can Maximize Your Retirement Plan

While most Americans purchase life insurance plans to protect their loved ones, they may not know that life insurance can also be another opportunity to enjoy a more financially stable retirement. With the help of a qualified financial advisor, you can utilize your permanent life insurance plan to do a number of different tasks. Below are three ways life insurance can help maximize your retirement.

Maximizing Your Retirement With Life Insurance

  1. Maximize Your Pension. While pension plans are on the way out these days (due to the increasing popularity of the 401k), some 30% of working Americans have a pension as their sole means of employee retirement funding. The pension plan is great in theory, but many individuals chose to support their spouces and thus do not opt for the maximum payout. With the addition of life insurance, you can now opt for the higher single life distribution and your spouce can benefit from payments from the life insurance policy. The end result? Both of you can enjoy the full pension payout in retirement.
  2. Part of Your Legacy Planning. Permanent life insurance is one of the best options to providing financial support for your family or loved ones after you're gone. Our financial planning company on Cape Cod can walk you through our estate planning services and discuss how your life insurance plan can help contribute. Life insurance for estate planning is mostly used to give financial assets to loved ones. During the distrubition of your estate, the policy allows for these assets to be transferred without having to pay income tax and avoiding probate. This means the life insurance policy can be used to pay for any estate taxes.
  3. Prevent You From Outliving Your Assets. With the help of a trusted financial advisor, your life insurance policy can actually be used to withdrawl funds in the event that the market isn't performing as expected. This allows individuals to supplement their retirement income when cash flow from market investments is not enough. Depending on what type of life insurance plan you choose, it can also provide you and your spouce with long-term care benefits. For those looking for a lifelong stable and consistent income, life insurance policies can also be transferred into an annuity at any point in time.

How Our Financial Planning Company Can Help

First things first: if you do not currently have a life insurance policy, we recommend setting one up so that you can financially protect your family in the event of your death. Setting up life insurance as early as possible helps you build permanent policy values so that you are better financially prepared down the road. If you currently have a life insurance policy, then our advisors will sit down with you to assess your options for maximizing your retirement plan using this policy. There are a variety of different life insurance plans and you may realize that you have quite a few different types (term, permanent, group or executive compensation). We will work with you and your life insurance agent to adjust or restructure your plan to better suit your retirement planning needs.

Ready to start maximizing your retirement with your life insurance policy? Contact Cape Cod Wealth Strategies & Insurance Services, LLC today so we can discuss your retirement planning goals.