5 Reasons To Purchase Life Insurance At A Young Age

Retirement Plan

Life insurance fits into retirement planning especially well if you purchase it at a young age. Because it can serve as protection for survivors and as a growth vehicle, young individuals can use it for very long range retirement planning. Though term insurance provides no direct retirement savings benefits, it allows the purchase of large amounts of protection for little cost, which protects loved ones while leaving cash available for retirement savings plans. Everyone should have term life insurance when they need a high amount of protection, such as when raising a family while paying a big mortgage, and whole life and universal life policies for smaller, lifetime protection and retirement planning. These permanent policies accrue a cash savings value that can supplement a retirement nest egg. They also provide the opportunity to provide fully paid-up coverage during retirement years and, in the case of universal life, cash savings values to cover premium costs during retirement. A variable life policy provides the life insurance for a retirement plan. Cash savings values are invested in securities, and the value can then be taken as tax-free retirement income via a policy loan.

Continue reading to learn how life insurance can help with funeral costs.