The shrinking pensions, high medical costs, shaky social security, and steadily increasing costs have necessitated each individual to ensure security of his or her retirement. Every individual must start planning for retirement now. In case of those who are starting their career now have few decades to plan for their investments to grow. You make less investment for each pay period for the growth of the investment. However, it makes sense to plan now to improve the situation during your retirement, whatever your age may be. And to that end, life insurance takes an important role in it.
The different types of Life Insurance for retirement
- One of the best means to grow your money for retirement is a whole life or variable life insurance policy. These types of life insurance are affordable and act as investment vehicles. One would do well to purchase them early in their work history. In case there is an early death, the survivors are protected with a face-value cash payout. However, the money that is paid by you grows with time in a fund and can be used to live in the later part of your life.
- The survivors get cash to meet different expenses through a whole or tem life insurance policy as an estate is settled. This type of policy also provides money for the burial services.
- It would be prudent to purchase the right insurance at an early age so that the surviving spouse are guaranteed to get finance as you get older and your health becomes poorer. As and when your need changes, you can increase the face value of coverage and there would not be any need for additional medical exams.
- To supplement your pension or social security, an important way is to go for annuities that can grow over the passage of time. After the annuities mature, you are paid back every month for your life time.
- One of the ways to get low-interest loans in an emergency is to include your whole life policy in your legacy to your heirs. This is a good way of comforting in the present time of high medical costs.
Take the help of an advisor to plan your retirement investments. It must be noted that term, whole and variable life insurance polices are a good source of security and flexibility that provide the financial base and protect you as well as your spouse in your retiring years.