With Life insurance, an insurer and a policyholder agree and sign a contract wherein the insurer guarantees payment of death benefits to decided beneficiaries if the insured dies.
Life Insurance has three major components that include:
- Death Benefits
It is equivalent to the total amount of payment provided by the insurer to the agreed beneficiaries.
These are payments provided by the insured. These are associated with the cost of insurance, mortality, administrative and maintenance fees, etc.
- Cash Value
Cash value can serve as a savings account, or it can offset the increasing cost of insurance.
Strategies For Using Life Insurance For Retirement
To be able to fully utilize Life insurance for retirement soon or in several more years, these are the strategies:
- Avail Term
Many financial experts have recommended enrolling in life insurance because this will aid people to pay for essential matters such as mortgage, education, retirement, etc. It will not only benefit one's self but even significant others.
- Prepare an Emergency Fund
Everyone must create an emergency fund that is at least equal to 3-6 times of monthly expenses. It is to prevent a person from going into debt.
- Protect Earnings with Critical Illness Insurance
It is difficult to predict who, among the people, will acquire a long-term illness or disability. It is a smart move to help protect monthly income and savings by getting related insurance.
Advantages of Using Life Insurance
- Can Replace Entire Or A Portion Of Pension Benefits
If a person dies, family members left may not be able to benefit from SSS or retirement benefits of the person who died. In life insurance, beneficiaries will still be able to receive benefits.
- Responsibilities Never Stop
When a person retires, other family members might continue to depend on him/her. Life insurance can help provide for them.
- Can Be Used For Payments Of Mortgages And Other Debts
Beneficiaries can use Life insurance in paying for mortgages and debts.
Being prepared for one's future and the betterment of significant others are wise actions. Your family and your future are treasured possessions. Make sure to protect it by getting life insurance. At Roper Insurance Services, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. To learn more about how we can help you, please contact our agency at (828) 697-6709 or Click Here to request a free quote.