Most people do not think of life insurance as a means for retirement, however, it definitely can be! Life insurance is most notably known to provide a death benefit to family when an insured loved one passes on. There is much more to life insurance while the insured is still living that can be useful in retirement.
Here are some living benefits of life insurance:
Tax-free retirement income
Through an indexed universal life insurance policy, you can overfund the life insurance policy now, and then take the money out of the account at a later time TAX FREE.
Chronic illness rider
In place of a long-term care policy, can help if an insured cannot perform 2 of the 6 activities of daily living (ADL’s) – bathing, continence, dressing, eating, toileting and transferring
Critical illness rider
Can help if an insured has a specific medical condition (heart attack, stroke, cancer)
Terminal illness rider
Can help if an insured is diagnosed as terminally ill and has a life expectancy of 24 months or less