Should life insurance be a part of retirement planning

The part that life insurance plays in retirement planning is disputed. Retirement planning is to benefit you when you reach the age when you can retire. Life insurance benefits your beneficiaries. That seems to be a contradiction. But the reality is, many financial advisors believe that there are some real benefits to making life insurance an integral part of your retirement planning. If you live in or near Niles, IL the agents at the Bob Korvas Agency Inc. can talk to you about what part life insurance can play in your retirement planning. 

Protecting your income

When you retire, often your expenses decrease but if one spouse dies, at the very least, one social security payment will no longer be coming in. This is the sort of thing that can change retirement from comfortable to a struggle. Life insurance provides a way to supplement the retirement income or replace the payment that is now missing. 

Protecting your savings

The final years of many people’s working lives involve catch up saving to get their retirement accounts up to where they should be. If one spouse dies during this period, the surviving spouse may find that they are going into retirement in a less than solid financial position. A term life insurance for 10 or 15 years at this time can make all the difference. 

Long term savings

With interest rates as low as they are, the rate of return on some whole life insurance policies can be higher than the rates that banks are paying. With no risk, this can be an attractive alternative to riskier investments. 

These are just a few of the reasons that life insurance should be a part of your retirement planning. To discuss life insurance and retirement planning give the Bob Korvas Agency Inc. in Niles, IL a call to discuss your options.