Wheeling , IL (PressExposure) May 19, 2010 -- AccuQuote, a leader in providing term life insurance quotes to people across the United States, provfides three ways consumers can use life insurance to plan a comfortable retirement. The company encourages consumers to incorporate life insurance into their overall retirement plan when setting financial goals for the future.
Life insurance is a multifaceted product; benefiting people in all stages of life, from birth to retirement. However, life insurance becomes extremely important as people begin making retirement plans, which is typically several years before even reaching retirement age.
"Due to the dramatic downturn in the economy, many people's assets, including savings accounts, investments and home values, aren't what they used to be," says Byron Udell, founder and CEO of AccuQuote. "Without a sufficient life insurance policy, these assets may not be enough to simultaneously fund your retirement and protect your family's financial future should you die prematurely."
AccuQuote provides the following three ways consumers can use life insurance to plan a comfortable retirement:
- Prevent retirement plans from dying too soon - "If you die before reaching retirement, your surviving loved ones could potentially miss out on both your salary for living expenses and the money you were setting aside for future living expenditures," says Udell. "If you have an adequate amount of life insurance coverage, it can help pay for your family's current and future expenses and may still be there for your surviving spouse's retirement." People who die prematurely haven't had as much time to put together a financial plan that has the potential to really pay off.
- Supplement retirement income - Some circumstances can really change and the insured may no longer have anyone who actually depends on the proceeds of the death benefit for financial support. In this case, a permanent life insurance policy provides the flexibility to surrender the policy and supplement retirement income with the funds that have accumulated in the policy's cash value account. This savings element that builds up over time can be used to pay for medical bills, long-term care or other unforeseen costs.
- Preserve estate assets for survivors - "For those with large estates, a life insurance policy can offset government estate tax bills and prevent your surviving loved ones from having to use their own funds to pay disturbing out of pocket costs," says Udell. For those with more modest estates, life insurance can leave a legacy by providing money for college tuition, a down payment on a first home, etc., for surviving children and grandchildren, even if a majority of the insured's assets are spent during their retirement years.
An adequate life insurance policy can give consumers confidence to retire and peace of mind knowing that their loved ones are protected financially. Life insurance experts, like the ones at AccuQuote, can help consumers choose the right type and amount of life insurance that fits within their family's overall financial situation.