Term life insurance is a great way to take care of your family after you’re gone, but wouldn’t it be great if you could use those finances in retirement? In fact, some life insurance policies do have an investment component, with features that make them an important part of any retirement plan. When comparing policies, make sure you’re not overlooking the benefits of whole life plans, which can generate income when you need it most.

How Life Insurance Can Support You During Retirement

Types of Policies

Only certain policies provide income benefits for the policyholders. While whole life and universal life insurance plans typically have higher premiums than term policies, they accumulate cash value over time. Unlike term life, a whole life insurance policy retains this value, allowing you access to the funds through regular withdrawals or loans.

Withdrawing Cash From an Insurance Policy

Insurance carriers generally provide two options for withdrawing cash from a life insurance policy. You may take out a loan against the value of the policy, which reduces the value of the death benefit until it’s paid back. Or you may choose to make cash withdrawals, which also diminish the amount your beneficiaries will get after you pass away. For many retirees who have fewer financial obligations than young parents, a whole life insurance policy can function as a savings account, providing a stream of guaranteed income in your golden years. Even better, the premiums you’ve already paid can be withdrawn without incurring a tax penalty
 

With offices in High Point and Archdale, NC, the Phillip Kent Beck Agency is the area’s leading Nationwide® agency, providing a variety of policies from a leading national carrier. Their team of experienced agents will walk you through every step of the process and help you select the perfect life insurance policy for your needs. Visit their website to learn more about their life insurance options, follow their Facebook for more tips and advice, or call (336) 434-2111 now to request a quote.