Retirement may still have a long way to go. It may be just around the corner. Sometimes it is already here. With 401k, IRA and pension plans, why is life insurance in retirement plans?
Self-complete
Do you have a family and/or business?
If so, if you should die before you reach retirement age, you want to make sure that your family has a place to live, your business can survive, and your family or business will not be economically struggling?
If you have children, do you want to make sure that the university fund you have has enough funds for them to go to college if you see it happen here or not?
If everything goes according to plan, what should you do if you have a family or business?
Do you want to have a fund that you can access at any time? Maybe you want to retire soon. Maybe you have cash crunch.
Whether you die too fast or live too long, a permanent life insurance policy gives you the flexibility to do many things that are not covered by the above retirement plan, such as not being penalized for getting it, if it is reasonable, it can be Accessibility.
The cash value can be used to supplement retirement income or it can be the retirement plan itself.
At some point we are all dead. When this happens, you not only get the benefits of living, but also the beneficiaries you choose - your family, your business or charity - anyone you decide - offer tax-free death benefits.
Self-directed
Are you more willing to take care of your retirement plan and life plan? Do you want it to be the IRS or you?
There are self-directed retirement plans, but if they are tax-compliant, they must abide by the rules and conditions of the IRS.
Life insurance is not a plan that meets tax standards.
Therefore, it can be truly self-directed by the owner. It's not that there are no rules and conditions, but they are easier and more flexible when you can contribute and when you can access it.
Tomorrow, you can have more than one. You can use different strategies for different purposes, including retirement.
pension
There was a time when people worked in the company for many years and they received a pension after retirement. Although not completely extinct, they have become rare.
Define a pension plan based on an online dictionary:
" A fixed amount other than wages, which is paid to a person or the surviving family of the person on a regular basis, taking into account past services, age, performance, poverty, injury or loss. pension. "
Technically, life insurance is not a pension plan, but it can be provided instead of an employer, or it can be provided by an employer or created by an individual for this purpose.
Call it what you want.
Why is there no life insurance in the retirement plan?
Orignal From: Life insurance in retirement plans
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