Retirement Income Via Whole Life Insurance
August 28, 2009 by Stephen Kersey
Filed under Finance
According to recent analysis by MassMutual, supplementing retirement income by cashing out whole life insurance policies can leave retirees with more cash compared to alternatives. Additionally, having whole life insurance is a great way for a retiree to max their net legacy that they leave for their families.
Said Melissa Millan of MassMutual: “With this strategy, retirees don’t have to settle for liquidating assets in a down market or cutting back on their lifestyle choices. A retirement income strategy incorporating whole life insurance and an equity-based portfolio can tame a bear market by creating the flexibility needed to respond to changing economic conditions.”
As opposed to other types of benefits, whole life insurance provides a death benefit that is tax-free. And unlike the stock market, you can estimate the cash value of your whole life insurance easily.
The recent downturn in the economy also illustrated some lessons retirees should learn.
Said Millan: “As people prepare future retirement income plans, they should be aware of this strategy and its effectiveness in taking the sting out of market downturns. Whole life insurance can help level off what otherwise could be a very bumpy ride.”
MassMutual (Image: Flickr)
