50+? Is Life Insurance Part of Your Retirement Plan?

Have you ever noticed that as we get older, we start to worry more than we did when we were younger? As new born you don’t know what’s happening, all you want is sustenance and clean hindquarters to be happy. You get older and start worrying about toys, then grades, then boys or girls, then whether or not you’ll go to college, what you’ll do with your life, then getting a job, marriage maybe. See what I mean? It just keeps getting more and more complicated. By the time you’re 50, you’ve been working for a long time, your family life is settled, and your kids are growing up. It’s time to look towards the future, and a life where a steady income might not be something you can take for granted.

Yes, I’m talking about retirement. The golden years as they’re called, years where you simply relax, and enjoy the fruits of your lifelong labor. Till you’ve reached the age of 50, the need and the urgency for a retirement plan isn’t so great. It’s the illusion of time, you think there’s a long way to go, then suddenly there’s a cake with your name on it that proudly bears the big five-oh, and it hits you that maybe there isn’t as much time left as you thought.
Once you do start putting a retirement plan in place, consider a life insurance policy as part of that plan. I think the sheer versatility of a life insurance policy and the options it has to offer make it a perfect addition to a retirement portfolio.
Why a life insurance policy is a good addition to your retirement plan

• Cash Value. A life insurance policy, if based on a term or fixed period, accumulates cash value over time. This accrued value is then handed over to you on the expiration of the policy. So say you are planning on retiring at 65, get a 15 year term policy, and by the time you do retire there’ll be a nice little nest egg waiting for you to save or splurge as per your fancy.
• Insurance. Obviously, if things don’t go to plan, and you meet an untimely end, at least you’ll know your family is covered, and won’t want for money in the future. The fact that you’re covered in a way that your loved ones are taken care off will be a huge weight of your shoulders. Byron Udell, CEO of AccuQuote – the internet-based insurance quotes and brokerage firm – had this to say on the subject, “Think about it…if you die before your spouse or other family members who depend on you for financial support, your retirement savings account may not be enough.” A pretty compelling argument from one who can be recognized as one of the foremost experts in the field.
• Tax-free loan. Say you need money for some reason, post-retirement. I don’t mean everyday money; I mean a substantial amount because of an emergency. Well you can borrow against your insurance policy, its tax free, and you don’t even need to repay it. Yay! Free money! Well not quite, see the money will be deducted from your final payout, but at least you won’t have that debt hanging over your head because you know it’ll take care of itself.
• Cost. As long as you’re of sound health and don’t have any serious ailments, the cost of premiums will be relatively low. Let’s be realistic here people, It won’t cost the same as it would have if you were 20 of course, but the costs won’t be prohibitive either. IF you’re really fit, like no issues what so ever health-wise fit, then you’re set in this respect, and getting an insurance policy will be a cinch.
• Repayment of debts. Say you already have a loan taken out, or a mortgage on the house. A life insurance policy’s payout will help settle those bills. If you have a strong financial standing and no debts, then you can pay for your child’s education, and he or she won’t need to take a student loan and accrue a debt either.

Those then, are the benefits of a life insurance policy for someone who’s about to retire. As you can clearly see, it does make sense, and is an option worth considering.