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How could life insurance fit into your retirement plan?

May 2021
 
Life insurance has been an important part of your financial planning during your working years. See how it can fit into your retirement plan


Even if you anticipate a retirement in which your mortgage is paid off, your children are grown and living independently, and substantial savings for your spouse are in place, life insurance could still be of value to you even if not for traditional reasons.
   
Donate to a charity
Dedicating some of your life insurance to a nonprofit that's important to you is a powerful opportunity to define your personal legacy. If you have a charitable cause you are passionate about, life insurance can help you leave a gift and your premiums could be tax deductible.
 
Social Security replacement
Life insurance benefits can help replace your income (if you are still working) or Social Security after you pass and give your spouse more financial security.
 
Leave a legacy
You’ve spent a lifetime accumulating wealth and you want to pass it on to your loved ones. But also consider the fact that passing on assets to family also means you’re passing on a potential tax bill. The funds received from life insurance can help them pay the tax bill. Beyond funeral costs, your spouse may want to move to a new home or make other lifestyle changes. Insurance can make that easier to manage. For adult children or grandchildren, a policy's death benefits could fund a down payment on a home, cover a big chunk of college costs or help alleviate a challenging financial situation. If you have a lot of assets, it may help with estate tax planning.

Consider the term of your life insurance
If you have term life insurance, make sure you have coverage to carry you into your retirement years so that you can meet the goals you’ve defined.

 


Aon Insurance Services is the brand name for the brokerage and program administration operations of Affinity Insurance Services, Inc., a licensed producer in all states (TX 13695); (AR 100106022); in CA & MN, AIS Affinity Insurance Agency, Inc. (CA 0795465); in OK, AIS Affinity Insurance Services Inc.; in CA, Aon Affinity Insurance Services, Inc., (CA 0G94493), Aon Direct Insurance Administrators and Berkely Insurance Agency and in NY, AIS Affinity Insurance Agency.
 
Group Insurance coverages are issued by The Prudential Insurance Company of America, a Prudential Financial company, Newark, NJ.
 
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