When we purchase life insurance, we’re usually doing it to help protect our CA family from financial hardship when we pass. However, oftentimes those obligations change as we age. Our children grow up and find their own financial independence. Our lifestyles improve and our costs are reduced. Those life changes leave many of our old life insurance policies obsolete for their intended use. However, there is a secondary benefit of having a life insurance policy that you may not need anymore. It can help you get more out of your retirement.
Supplement Retirement Income
One of the ways you can use your life insurance policy is as supplemental income. You can annuitize your policy, which means you will convert the policy into a revenue stream with regular payments. This can help bolster your retirement income and allow you to do more. You can set it up to make regular payments or take a lump sum to invest in the market to generate more income. Furthermore, you can utilize your life insurance as a fallback savings account. That way, if there is ever an emergency or the markets are simply sluggish, you will have a financial safety net to fall back on.
Get More Out Of Your Pension
When you have a pension, you will be faced with a difficult choice: do you take the benefits early at a lower payout, or wait a few years and take the benefit as a higher payout? For many who are ready to retire, this can be a tough decision to make. However, by converting your life insurance policy into a source of income, you can bridge that gap with ease. This means you’ll be able to take the lower payout from your pension and supplement your income with your life insurance policy. Done correctly, you can enjoy an earlier, more comfortable retirement.
Help Build Your Legacy
There are so many ways to use your extra life insurance for end of life planning. You can use it to pay estate taxes. You can invest in your family business to ensure continuity if you pass. You can pay a lump sum directly to your beneficiaries when they need it rather than just waiting until you’ve passed. You can even use the money to give to a charity or set up a trust. No matter what you would like to leave as your legacy once you’ve passed, your life insurance policy can be a fantastic resource.
At Asurea, we’re more than just a CA life insurance company—we are experts in financial planning. We’ll work with you to make sure that your goals are met now and with any changes in your future. Check out our website at https://asurea.com to learn some of the different strategies available to make the most of your retirement while protecting the financial security of your CA family. Give us a call anytime, and our dedicated agents will help you make a plan.