When putting money aside for your retirement years, it’s essential to consider all your options. Many people don’t realize that life insurance can help them put money back for retirement in the form of an accumulated cash value. The team at Safechoice Insurance Agency can help you choose a whole-life policy that lets you provide for those you love and save for retirement in Rochester, MN.
How Can Whole Life Insurance Supplement Retirement?
Whole life insurance builds up cash value with tax benefits. Every time you pay your premium, your policy’s cash value increases. You can use this for additional retirement funds, withdrawing the cash when you reach retirement age. Here are a few benefits of choosing this option.
Whereas term life expires at the time specified in your policy, whole life insurance is permanent. You can draw on the cash value any time before your death. Additionally, the premium remains constant and won’t increase as you age. However, signing up sooner rather than later is a good idea for the most affordable premiums and maximum cash value accumulation.
Every time you make a premium payment, the cash value increases slightly. Your Safechoice Insurance Agency representative can explain how it works on individual policies. Even better, the cash value is typically tax-deferred.
You may also qualify for dividends. Depending on the insurance policy you choose, you may have the option to get dividends based on the company’s profitability and other factors.
Using Whole Life Insurance for Retirement Savings
If you purchase whole life insurance as part of your retirement savings, start as soon as possible. The younger you are, the more cash value your account will accumulate. You can also save on premiums. Although it’s never too late to save, we recommend signing up by age 45 or younger.
If you’re looking for life insurance in Rochester, MN, contact Safechoice Insurance Agency to set up a free consultation. We’ll explain how your life insurance choice affects your retirement savings.