Many people think that in their time of life the necessity for all times insurance will dissipate. With this thought in mind, many of us buy term life assurance which will expire once they are in their 50’s or 60’s. After the insurance expires, many find that their need did actually decrease, but it certainly wasn’t eliminated all at once . As is usually the case, once they attempt to buy more insurance they find that the premiums are unaffordable or that they do not qualify medically due to changes in health.
WHY OWN INSURANCE IN YOUR GOLDEN YEARS?
There are a couple of common reasons people own insurance later in life. Some own it because they didn’t save the maximum amount as they thought they might and their surviving spouse needs it for income purposes. Some own it because they were more successful than they ever dreamed possible and now they have it to assist pay estate taxes. Some need it because they’re somewhere within the middle and that they aren’t really sure where they stand. Whole life assurance is one among the foremost flexible financial tools an individual can own and can help to supply regardless of the rationale .
POTENTIAL INCOME PROBLEMS
Pensions and Social Security income are collected only you’re alive. Upon death, pensions have income options, predetermined by you, which will potentially produce lower or zero income payouts to your surviving spouse. Social Security ceases all payments upon death leaving the surviving spouse without that income. an entire life assurance policy can help offset these potential income losses. Imagine an elderly spouse losing the love of his/her life; this is often one among the foremost challenging things an individual can experience. Now imagine an equivalent situation, but due to the death, the entire income to the house hold is decreased by 50% or more. this is often a true life situation that a lot of people experience, one that would are made easier by owning whole life assurance .
Whole life assurance builds cash value which cash value is guaranteed. The cash value is additionally available at anytime for any reason. I even have had many purchasers use it to assist with college tuition payments for his or her children or grandchildren. a number of whom have had money put aside intended for education but due to current market fluctuations, decided to go away the cash invested and withdrawal money from the less volatile cash value of their life assurance policies.
Many of my clients use the cash value in their life assurance to assist supplement their retirement income. the cash withdrawn from the cash value (if funded and designed properly) is tax-free. With the volatility of the market and potentially increasing tax rates, a tax-free retirement vehicle is becoming more and more attractive.
Whole life assurance are often one among the foremost flexible financial tools you’ll ever own. The intended purpose can change (and often does) supported the stage in your life no matter your financial record .
Matt has enjoyed ten successful years of experience working with high-income families concentrating his practice on working with physicians, attorneys and business owners. His solid work experience and powerful business ethic enables him to closely consider his client’s needs for insurance, education planning, retirement planning, estate planning and the way these financial interrelationships co-exist.