Do you view life insurance as an essential component of your future economic strategy? The primary reason you may choose to invest in it is to save your dependents or loved ones from any financial burdens that may arise from the loss of your income if you pass away.
According to The Callahan Law Firm this policy becomes a form of protection for your family as they will not have to worry about major fiscal expenses such as remaining mortgage payments, any outstanding loans and other high costs that could incur. If you are one of the lucky few who has put away enough money on the side to fund your children for college, fulfil your mortgage loan payments and for a rainy day, then you can definitely think of investing in a life insurance policy as part of your retirement plan. How can it help you?
Long Working Cycle
With constant innovations in medicine and technology, the global mortality rate for mankind has increased in the last century. As awareness spreads, a large number of individuals have adopted healthier lifestyles and nutrition. People are able to work longer than the age of sixty-five-which is considered the general retirement phase.
In today’s society, it has become a norm to find people at such stages in their lives to be actively working and earning more money. This means that in the unfortunate and unforeseen event of their expiration, an alternative form of their income will have to be provided. This is where your life insurance policy will act as your saviour. It can substitute your pension in your absence for your spouse as well.
Become Debt Free
Would it not be fantastic to be free of all pending loans when you decide to retire? Not everyone is blessed enough to be part of such a utopian world. It is in this scenario where the procurement of life insurance can pay off any existing debt and help your inheritors shoulder the responsibility. How will this happen? When the person whose name the life insurance policy has been taken out on passes away, the insurance service provider will release a lump sum to the beneficiary. This is known as the death benefit.
Meet Miscellaneous Costs
Every household has a different story to tell and holds variant financial parameters. It is possible that in the event of a primary bread earner’s death, the ones left behind may not even possess an adequate amount of money to fund a funeral, pay inheritance tax or other estate related costs. The finances received from the life insurance plan can settle such expenses and reduce your family’s worry in this regard at least. It will benefit them greatly as they will already be dealing with the emotional rollercoaster of your loss.
As you have retired, you will surely have the right to receive a pension format. However, if you pass away and leave behind an ailing or dependent partner, then she or he will no longer have access to the income from your pension. You guessed it, the life insurance pay-out will replace those funds and ease your partner’s day to day fiscal outflows.
Life insurance has all sorts of possibilities. Even if you do not leave behind a family, there are other actors who can benefit greatly from life insurance. If you believe in giving back to the society that helped you build your dream life, you can name your favourite charity or trust as the beneficiary of your life insurance plan.
Upon your passing, the insurance service provider will release a pool of funds to them and you never know whose life could change for the better as the result of your generosity. When you reach your retirement age, it is a natural tendency to reflect and look back on what circumstances and individuals helped you become who you are now. This would be an effective and magnanimous way to thank them.
Life is extremely unpredictable and can throw anything your way. You never know when you may need a hoard of cash for any kind of purpose: to provide medical treatment for the sudden emergence of an illness, to help a friend, to travel the world, or even to pursue your life long dream of becoming a sculptor. If you opt for a permanent life insurance plan, it comes with a feature to use part of it or the whole amount (if you outlive its term) to fulfil your heart’s desires.
Tax Free Money
Another important characteristic of choosing a permanent life insurance plan is that the cash flow associated with it increases over time. As stated earlier, it is your discretion what to do with that money. You can use it to continue premium payments on the existing policy or procure another one. However, what we are referring to is the fact that you will be able to take out a certain amount that will be free from the clutches of taxation.
It is likely that you have worked hard to own property and procured other assets along the way. How do you divide them equally amidst your inheritors? It is a challenging feat, is it not? Perhaps there is a family business that your father handed down to you and you need to decide who is best fit to take your position.
It could be your partner or your youngest child. Maybe there is a condo in the French Alps you can give to your firstborn offspring. What about the one in the middle? Life insurance is an effective tool to help you equalize your children’s inheritance. How? Simple.
Either, you use the funds to expand your business so it is large enough to suffice more than one share to your remaining child. Or, you could simply bestow the life insurance payment to him or her. In this way, internal family conflict and drama will be effectually avoided and you can move onto the next life at peace.Read More