Most people don’t think of life insurance as a retirement tool, but it’s important to consider what will happen to your family’s retirement plan if you die prematurely. Can your spouse still retire without the benefits your income would have provided? Life insurance can replace the income you would have earned and the savings you would have contributed throughout the remainder of your working life.
If you are a business owner, life insurance can provide your business partners funds they can use to pay your spouse for your share, which can free up your partners to keep operating. Alternatively, life insurance could provide your family with a lump sum that would give them time to sell the business and replace the income lost due to your death.
The Role of Life Insurance in Your Retirement Plan
It’s hard to know what kind you need. It’s hard to know if you have enough. And it’s hard to know if you need any at all. Insurance companies have made it even harder by coming up with bewildering names: whole life, term life, universal life. Some life insurance policies have a cash value while others do not. Some invest that cash value in the stock market while others pay a fixed rate of interest. Some insurance policies combine all of these ideas.
As risky as it is to not have life insurance at all, it’s equally as risky to pay for insurance that’s not right for you. This is why it’s important for you to sit down annually with an insurance professional to review how your policy works and how it will help you to protect your family. It is imperative that you make sure the policy is owned by the right person or entity. It is also vital to review a cash value policy periodically to ensure it will provide the benefits you need.
Benefits of a Life Insurance Policy Review
Long-Term Care Insurance
Another piece that you may not realize belongs in your retirement plan is long-term care insurance.
Regardless of the setting (your own home, a nursing home, or an assisted living facility), long-term care can be quite expensive. With rising costs of long-term care, we recommend that everyone make a plan for how they will fund their care.
What to Expect When You Work with Eide Bailly
Our team of specialists will review your existing policies, as well as any additional insurance needs to ensure you have the right protection. We are entirely impartial, and work with only the top-rated financial carriers. Our insurance review process will analyze, improve, and maximize your insurance protection needs.
If you’re unsure how much life insurance you actually need, you can use our life insurance calculator. Our custom calculator uses age, net worth, life savings and more to get you an accurate result.
If you already know what kind of coverage you’re looking for, use this tool to get a quick quote and compare carriers’ rates to get the best value.
Are you ready to find out if your coverage matches your needs?
It all starts with a conversation.
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Insurance products are offered or issued via Eide Bailly Agency, LLC. Eide Bailly Financial Advisors may also be licensed as insurance agents/producers of Eide Bailly Agency or as Representatives of United Planners to sell securities. Not all products and services are available in all states.