Does Your Retirement Plan Include Life Insurance?
Life insurance carries a few misconceptions with it in the general society. People often assume it is only bought when they are going to die, so their kids will not have to pay for the funeral costs. This is just one example of erroneous thinking. It is necessary for you to actually understand what exactly a life insurance is before making any assumptions about it. by understanding it and learning how to leverage it can allow you to accumulate great wealth for yourself and your family. It can especially become useful in your later years when prospects of retirement start looking attractive.
You Can Maintain Enough Term Life Insurance to Replace your Future Income
Term life insurance is designed to be temporary in nature. Let’s assume you have an annual income of $80,000 and you want to replace it all with a lump-sum nest. With a 4% withdrawal, you will need $2 Million in assets. You can easily make up the difference with life term insurance if you do not have enough. This will cover you until your retirement age.
Importance of Whole Life Insurance
Whole life insurance guarantees on the premium, death benefit, and cash value. You will be guaranteed to have a cash value that you can use for whatever you want long before you retire. It is especially useful for married couples. It can allow you to set up your own retirement or even funds for your children and grandchildren.
Structure the Policy So You Can Minimize Payments
A whole life insurance allows you to make a system where you will only have to make single annual payment for a few years. The frequently used 10-year plan is most popular in this regard. You can regard term life insurance as renting an apartment. Hence, whole life policy would be life a lifetime mortgage. A 10-year whole life plan allows you to pay for a house in 10 years and then you can live in it forever. You can also create equity in your home. A structured policy can allow your money to grow forever, even after payments have ceased.
You Can Customize Life Insurance to Fit Your Requirements
While choosing a life policy from any insurance company, you can take the option of customizing. It can allow you to choose you limitation limits, death benefits and savings etc. The higher contributions will undoubtedly allow for higher death benefits and cash value. However, you can choose an amount which is feasible for you.
The Cash Value in Life Policy is Always Available
You will have cash value available to you for your entire life, once you take out a whole life insurance policy. Which means, you can make use of it before death. Such policy, if intelligently used, can make you more money than any investment.
The Death Benefit
A whole life policy can offer your heirs complete death benefit. This benefit will stand even if you have not fully paid it off. This is an incredible advantage to leave for your descendants. Any loving family man or woman would jump at such a chance.
Life Insurance; Better to Have it Than Not
As explained earlier, this policy is not necessarily of use only when you die. It is not essential that only the ones you leave behind as beneficiaries would make use of it. you can take advantage of it too. You can enjoy a comfortable life of retirement by taking out the cash value and living off of it.
Best Life Insurance Firm in Dallas Texas
SGA Financial Inc. is one of the best too offer any life policies for the sake of retirement to you. We can tailor cut a policy to suit your needs. Every characteristic will be subject to your criteria and your approval. Once a policy has been made, you can rest assured your retirement will be the easy and comfortable. Contact us for more info.
