There are a few ways to accomplish retirement funds with a well funded whole life insurance plan. The most popular would be to borrow the cash value on a monthly income basis. You will pay a small interest rate in order to borrow the funds. However, this will do two important things. One borrowing funds keeps your policy and death benefit in force and second these funds become tax free income for your retirement. Always consult with your trusted advisor to avoid costly mistakes.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
Not all life insurance can be used for retirement funding, so be careful with that. If done right Permanent life insurance products can be utilized as an income source in retirement. The most reliable for this purpose is Whole Life. Obviously variable products can work, but they have inherent downside risk. Whole Life on the other hand has guaranteed interest and with mutual companies dividends also play into the cash accumulation of the policy.
So the cash value of the Whole Life policy can be used to supplement retirement income by systematically taking sums out from the cash value that has accumulated over the years leading up to retirement. Be sure to work with your insurance adviser and run some projections on this before planning on easy street in retirement.
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So the cash value of the Whole Life policy can be used to supplement retirement income by systematically taking sums out from the cash value that has accumulated over the years leading up to retirement. Be sure to work with your insurance adviser and run some projections on this before planning on easy street in retirement.