Insurance Strategy

Insurance for Retirement

When you think of insurance, you may not think of retirement. In fact, most people think the only reason for life insurance is a death benefit. Yes, you want to provide for others once you are gone. However, some types of insurance have other options, too.

For example, indexed universal life (IUL) policies may be a way for some retirees to have tax-deferred income. Also, different kinds of insurance may offer long term care protection. In addition, some people may choose to withdraw money from their policy in order to create an income. Finally, for some, insurance for retirement might include a way to protect their money long-term.

Strategies for Protection

Sometimes people have insurance policies that are no longer serving their needs. At Preservation Financial Group, we can review your current insurance products. Next, we can go over the pros and cons of your current insurance(s). Then, we can discuss potential new options for you. For instance, some people are able to upgrade their current policies. That way, you may get into products that better serve your needs. If you’re not sure about your current insurance for retirement years, reach out. We’d be happy to meet and offer guidance.

Income & Insurance

When you buy an insurance product, you pay a premium. Sometimes this is paid upfront in a lump sum. Other times, the buyer pays a premium over time. Depending upon your plans of insurance for retirement, you may choose either one.  For example, some retirees use life insurance policies as a way to have regular income. In this case, the income may be able to be tax-deferred or, potentially, tax-free income. In addition, some retirees may use insurance strategies as a way to keep their money accessible.

Another reason to think about insurance for retirement planning purposes is taxes. Remember, an insurance policy is not a security. Nor is it a retirement account. Therefore, the rules regarding taxes and required withdrawals are different. Be sure to find out how your insurance policies may differ from your other retirement strategies.

Why Insurance for Retirement?

Once you reach retirement, your goals may change. Generally, it is a good idea to protect more of your money as you age. Similarly, your goals for insurance may change as well. When you were still working, you may have wanted insurance as a “just in case” tool. Now, in addition to death benefits, you may be looking towards other goals.

Certainly, protecting your loved ones is important. But, there are other factors now. For example, tax rules may differ in retirement. Also, health concerns may arise. Of course, needs are different for each person, too. Be sure to meet with an advisor to review insurances. Get an overview as to how it may or may not fit into your plan. Preservation Financial Group is here to help you learn more.

What Are The Benefits?

Certain insurances may offer additional potential benefits.
For example:

  • Cash Value Protection (based on claims paying ability of insurance company)
  • Linking to an Index
  • Potential To Lock In Possible Interest Each Year
  • Flexibility 
  • Long Term Care Option
  • Withdrawing Your Cash Value
  • Funding All at Once or Over Time
  • Possibility of Accessing Funds Under Age 59 1/2

In addition, insurance may be a part of your legacy. Of course, this depends upon your individual situation. Other benefits of insurance may include:

  • Death Benefits May Be Tax-Free*
  • Avoid Probate
  • Lump Sum or Payments
  • Use of Death Benefits for Terminal Illness
couple having drinks on the dock successful insurance strategies for retirement tallahassee fl
To make the right decisions, you need to know more.

At Preservation Group Financial, we work hard to show you options.

Attend one of our online or in-person events. Or, meet with us. Let’s see how insurance may be part of your overall retirement.

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