Using Life Insurance to for Retirement Planning

Retirement should bring fewer financial worries, but sometimes unforeseen expenses can upset the balance between your savings and expenditures resulting in a retirement income shortage. Life insurance can be used to rectify these situations and set you at ease about your future security.


This page:

Explains how a whole life policy can help fund retirement

Advises you on how to provide for your spouse's retirement.


Want to know the best policy for retirement? This guide to being a retirement income planner gets you started.

Life Insurance for as Little as $20/Month?

Premiums can vary by as much as 50% for the same coverage and options, so it pays to get quotes from as many reputable insurers as possible. Us our quick 60-second quote form to find the coverage that's right for you, and a monthly premium that you can afford. Click here to get your fast free quote

Supplementing your retirement income

A permanent life insurance policy can supplement your retirement with extra funds. The majority of permanent life insurance policies have an added "cash value" component, which acts as a savings account. These savings can be accessed without canceling your life insurance policy.

If you ever find yourself in a tight bind because of excessive expenses or if you want to splurge on a vacation you've always wanted to take but never had the time, the money you've accumulated in your life insurance's savings account can be used. Although you are unable to actually withdrawal the money, you can take out a loan from the insurance company up to the cash value amount you have saved.

The insurance company charges you interest on the loan, but it's significantly lower than the interest any other financial institution would charge you. Unless you reimburse the insurance company for the loan, your policy's death benefit will be reduced by the amount of your loan.

The real value of this feature is being reassured that unforeseen costs will not put you in financial jeopardy during your retirement.

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A permanent, or whole life insurance policy is needed if you wish to fund your own retirement; get in touch with an agent from InsureMe who will discuss your protection and investment options, and present you with a quote on what the associated costs would be.
Click here to get a quick quote and to learn more.

Retirement planning for your spouse

A life insurance policy can secure your spouse's easy retirement. Feeling secure about your spouse's future and knowing s/he will be able to live out the years in comfort is a concern for most people. A life insurance policy with your spouse as the beneficiary eases this apprehension.

In naming your spouse the beneficiary s/he receives the proceeds of your policy, guaranteeing a comfortable, worry-free retirement. If you're considering solely the retirement options of your spouse, term life insurance may be a better option, as it is cheaper, and involves less hassles than a permanent policy. Get an instant rate quote now

Be your own retirement income planner

The cheapest way to insure both you and your spouse will be provided for after the other one passes away is to purchase a single life insurance policy with a survivorship rider attached. The provision amends an individual life insurance policy to make the death benefit payable to the surviving spouse after the death of either one.


Next: Life insurance can also be used to fund a child's education. See how.