Is Life Insurance Essential For Retirement Planning?

Life insurance is incredibly important to have for myriad of reasons, but one that is often overlooked is the benefits that having a proper life insurance policy can have on your retirement. Having the correct type of life insurance and the appropriate amount of coverage can have a tremendous impact on your post-retirement life. Here are three ways that a proper life insurance policy can help your retirement.

Protect Your Retirement Income

Having your life-insurance policy tied to your retirement income is an effective way of protecting the financial stability of one spouse, should the other pass way in an untimely manner. Consider, for instance, that when one spouse passes away the other is left with only their social security check each month, when they were accustomed to two. If a proper life insurance plan was in place, the payment from that claim can often replace the loss of income that comes from one less social security check. Life insurance ensures that even if the worst happens, the surviving spouse will still be financially taken care of.

It Makes Leaving A Financial Legacy Easy

Life insurance can also be utilized as an effective estate-planning tool. Utilizing a life-insurance policy to pass assets down to loved ones is advantageous because the asset transfer is usually income-tax free and paid to the recipient in a cash lump sum. Life insurance policies can be used to pay estate taxes, or even the continuity of a family business.

If you know that your estate will be taxed, you also have the option of setting up a life insurance trust. This will allow you to pass assets to your heirs outside of both estate and income taxes.

It Can Maximize A Pension

Yes, the pension is dying out in the United States, but there are still many workers who are lucky enough to have one. Those who do have a pension, are often faced with a choice later in life—do I collect my pension in one larger lump sum, or do I take a lower amount that also covers a surviving spouse? A life insurance policy can supplement a surviving spouse’s income, allowing more couples to opt for the larger, one-time lump sum option.

Hopefully by now you understand how it important it is to, not only, invest in a life insurance policy, but to also research how that life insurance policy can best supplement your retirement plans. Remember, if you are considering getting life insurance the sooner you can get it, the better. Life insurance costs go up the older you are, which means that, quite literally, now is the cheapest life insurance will ever be for you!

It’s always important to consult with an insurance before professional before finalizing any major insurance-related decisions. The staff at TGS Insurance are experts on life insurance policies, and are always more than happy to work with you to find the option that’s best for your needs, and your wallet. Visit for more information.


3 Ways Life Insurance Can Help Maximize Your Retirement

3 Ways Life Insurance Can Help Maximize Your Retirement