Can You Save Money For Retirement With Whole Life Insurance?

Whole life insurance is a policy that provides many financial opportunities. This plan is not as simple as a term life insurance policy. If used well, this type of coverage can provide a noticeable income during retirement. We will tell you more about the advantages of having this type of coverage and we can help you find an affordable whole life insurance quote, for free.

What is whole life insurance?

senior-couple-with-financial-advisorWhole life insurance is a complex policy that provides permanent coverage. Under this plan, you will be covered for as long as you live. You have to make regular premium payments. You can choose to pay once a year or once every month.

The most important feature of this policy is the savings account. A part of the money you pay as premiums is redirected into the policy’s account. The amount is then invested and accumulates interest at a fixed rate. You can withdraw money from the account after a certain number of years have passed. The main advantage is that the withdrawal is tax-free, under certain limitations.

How can it be useful during retirement?

If you buy a whole life insurance plan in your early 40s or late 30s, the policy would have had enough time to accumulate a cash value that could finance a part of your retirement fund. Provided, of course, that you do not withdraw any money prior to retirement.

Different policies have different account and regulations. When buying whole life insurance, you should ask for advice from a financial planner or an insurance agent. The interest rate varies from one agency from another. Some plans allow you to pay premiums using the policy’s cash value.

For more information, our blog is always at your disposal. We constantly update our websites with the latest offers of the insurance market. Our online insurance brokers are always ready to help you find the perfect plan. Visit us and buy coverage at affordable rates!