Think life insurance only benefits your beneficiaries after you’re gone? You’re not alone. But the truth is, life insurance can provide many financial benefits you can take advantage of while you’re still alive.
Having enough money to comfortably live during retirement is top of mind for many Americans. A recent survey conducted by Mutual of Omaha reveals almost half of life insurance owners want their coverage to help them save for retirement.* Good news for them — depending on the type of policy they have — it can do just that.
Whole life and indexed universal life insurance offer benefits that can be used as supplemental income during retirement. Term life coverage does not offer these benefits but still may be the best option for many retirees.
“A permanent, flexible life policy can accrue cash value that can be tapped into as a source of income during retirement,” said Mutual of Omaha National Sales Director for Life and Annuity Lee Bradford. “So, while it shouldn’t be a primary source of retirement income, life insurance can play an integral role in a diversified financial portfolio.”
To determine if permanent life insurance is right for you, Bradford recommends first calculating your life insurance needs. Once you’ve determined how much life insurance coverage you need, you should then work with a financial professional who can help determine the right type of coverage for you and your family.
*Findings are from a September 2023 Mutual Insights survey of 400 U.S. consumers ages 18-77.