Generate Retirement Income with Your Life Insurance Policy

If you have a life insurance policy, then you probably think of it as something that will benefit your friends and family later, after you have passed on. What you might not be aware of, however, is that your policy can actually benefit you while you’re still alive. You can, in many cases, use it generate retirement income or to supplement a less-than-ideal retirement savings account.   

Whole Life Insurance

If you have a whole life insurance policy, you already know that these policies definitely aren’t cheap. However, they do tend to accumulate a lot of cash value, which is good if you find yourself in need of extra funds during retirement. In fact, you can withdraw funds that the policy has earned or borrow against them if needed. Plus, if you set it up correctly in the first place, something that an investment adviser can assist you with, you can actually earn tax-free interest and/or dividends on your policy.

If you are thinking about taking out whole life insurance or if you want to use your policy to generate retirement funds, talk to your insurance provider and your financial adviser to get the ball rolling.

Universal Life Insurance

Another type of life insurance policy that can provide you with retirement income is a universal life insurance policy. With these policies, you can also earn cash value based on the interrest your policy generates. You can also raise and/or lower your death benefit and use the accrued interest on that.

Keep in mind, too, that with universal policies, there is an investment component as well, so you’ll be earning money, which can be used for retirement or really anything, if you know how to make the most of your policy. Again, having help from a financial adviser can really make all the difference between making your policy as effective as possible at earning you money.

No matter what type of policy you have, there’s a good chance that it can serve as an additional source of income for retirement. You just have to know how to work it and have the right help on your side!