Which Life Insurance is the Best For Your Retirement?
May 31, 2022
Finding the right life insurance policy for your retirement is essential in protecting your future and feeling relief. But which life insurance policy fits your needs — and more importantly, is life insurance a good idea for retirees?
The Right Life Insurance
Find the answers to these questions by reviewing the following five options for funding your retirement.
Traditional Pension
The traditional pension is one of the most common forms of retirement savings, and it’s one of the most straightforward, too. The retiree's employer entirely funds these plans, and they offer a fixed monthly payout to the employee once they retire. You can calculate the total by looking up your original salary and the time you spend at the company.
410(k) Plan
A 401(k) plan is another popular option for funding retirement. The solo 401(k) is becoming an increasingly common selection for business owners. Some financial advisors report that it’s favorable over a Simple IRA — also known as a SEP IRA — because it allows you to set aside a more significant sum of money — up to $20,500 in elective deferrals and as much as 25% of compensation in non-elective contributions. The total annual contribution caps off at $61,000 but excludes catch-up contributions.
IRA Account
An Individual Retirement account, or IRA, is an excellent option for many people. One of their most tremendous benefits is the wide range of account types — traditional IRAs, SIMPLE IRAs, rollover IRAs, SEP IRAs, Roth IRAs, and spousal IRAs. Each of these is best suited to a different objective, so you should talk with your financial advisor to determine the best.
Guaranteed Income Annuities
Guaranteed income annuities — or GIAs — provide retirees with a pension if their employer does not offer one. There are typically two options for enrolling in a GIA plan. Retirees may gradually pay into their plan— a deferred income annuity — or you may pay out a large lump sum and immediately gain access to ongoing monthly payments for the rest of your life.
Cash-Value Life Insurance
A solid plan for retirement includes investing in a cash-value life insurance plan. There will be various choices to make, including whole life, universal life, variable universal life, and variable life. Each of these, though, allows you to withdraw the plan’s cash value with the potential to eliminate your tax liability.
It is a popular option for retirees because it allows you to plan for your retirement while protecting beneficiaries. You want to be confident that your family and loved ones will be okay when you’re gone, and a cash value life insurance plan can provide that.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.