4 Ways To Use Your Life Insurance When You Retire

​Life insurance can be the key to a happy, well-planned retirement. But, you must buy the right type of life insurance product. Do you have a term life insurance policy that includes adequate benefits for death? Then, invest your other income in retirement accounts.

Get Term Insurance 
You may have a non-working spouse or partner, young children, and other living expenses. So make sure everything is accounted for when you depart. Your non-working spouse should be insured to support childcare costs. And other home maintenance work. Term life is the least expensive of all life insurance products. It guarantees the payment of death benefits on a term which is 10, 20, or up to 30 years. But, there is no equivalent cash value.

Your term life insurance at work or coverage provided by your employer may not be enough for all families. So, individual life insurance on top of an employer-provided plan is a practical choice. 

Assemble Your Emergency Fund
Create an emergency fund which is about 3 to 6 months of your family's living expenses. This fund will cover any unexpected expenses, bills, or debts. So your retirement contributions remain updated. 

Get Long-Term Disability Coverage
Disability insurance will help cover any lost income. If you are unable to work due to a disability or illness. Like employer life insurance, you may have disability coverage at work. But this is still inadequate for a family. 

You can buy disability coverage from a separate company. You can use an own-occupation disability policy. It covers in case you cannot resume work in your previous industry because of a disability. Meanwhile, any occupation coverage is meant for anyone unable to work anymore. 

Invest Remaining Money
Smart, forward thinkers buy term insurance and invest the remaining money they have. This can also refer to the difference between term life and permanent life coverage. Use this surplus money. Buy disability coverage or a traditional IRA if you meet income requirements. 

Life has its ups and downs, but you should always be ready with the right life insurance product. Consult your life insurance agency. Evaluate your current policy. Especially if there are new updates in your life or financial situation. 

At Insurance Agency Network, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (425) 681-0996. You can also request a free quote by CLICKING HERE.