You may already own life insurance or be aware of its primary use — providing money to your family or other beneficiaries when you are no longer here. You may even wonder if you still need life insurance at this time in your life. Yet, the value that life insurance can bring to a comprehensive, integrated legacy plan goes far beyond providing cash liquidity through the payment of death benefits. Life insurance, when used strategically, can help you address your goals and take care of what’s most important to you, including:
- Helping you care for your family with a guaranteed sum that can help cover lifetime expenses or even help assure the welfare of generations of your family in the future.
- Passing on your business, helping family members who are active in the business successfully take over after you are gone, or even help equalize your estate between your beneficiaries.
- Wealth transfer with charitable giving, giving you a way to give a guaranteed amount to the charity of your choice, while offering tax benefits to your estate and heirs.
Whether you are still saving for retirement or shifting your focus from building wealth to generating retirement income, it’s important to think about how much your chosen retirement lifestyle will cost and ultimately how you will fund that lifestyle — including securing dependable income to cover your essential day-to-day expenses.
An annuity is a contract with an insurance company that is specifically designed for retirement purposes. When you purchase an annuity, you make a payment to an insurance company that, in turn, agrees to pay out an income stream or a lump-sum amount at a future date. When used as part of your retirement portfolio, an annuity may provide you:
- A predictable income stream that you can use to help cover your essential living expenses.
- Protection from down markets with full or partial guarantees on your principal, backed by the issuing insurance company.
- The ability to accumulate assets that can grow in a tax-deferred manner, potentially helping you accumulate more assets to fund your retirement lifestyle.
Long-Term Care Insurance
Increasing longevity has resulted in longer, more fulfilling retirements, but has also led to more complications from unexpected health costs that can derail even the most well thought out plans. Developing a plan to address this risk can be an important part of your overall financial strategy.
Long-term care insurance can help you protect your wealth while also reducing the potential burden you place on your family. When structured properly, long-term care insurance can help ensure that you’ll have access to high-quality care should you ever need it, without having to spend your life’s savings to pay for it.