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4 Major Benefits of a Personal Retirement Plan [Infographic]

Even high net worth individuals who have worked alongside a financial professional for years may not understand how life insurance can be an integral part of a successful retirement strategy. Life insurance policies can provide more than income for beneficiaries after a person dies. Certain life insurance products can provide income during retirement or grant substantial tax benefits, such as tax deferred accumulation and tax preferred distributions, for clients who want to do more to plan for their retirement.

Financial professionals should regularly review their clients’ existing insurance policies and explain how life insurance products can make it easier for clients to hit their personal retirement goals.

Providing for beneficiaries and more

Most people think life insurance simply offers a way to provide for their family if they pass away. That protection is an enormous benefit, of course, but life insurance can do so much more.

According to a survey conducted by the American Institute of CPAs, financial professionals cited running out of money in retirement as the biggest fear for 57 percent of clients. If clients who cited running out of money their second or third biggest concern were included in the results, this was a fear for nearly 80 percent of clients.

Life insurance can provide a solution that can alleviate this worry for consumers. Certain types of policies, such as annuities pay out on a regular basis after clients reach a certain age, but certain types of life insurance policies provide clients access to the cash value of their policy during retirement years.

Because life insurance policies rarely have contribution limits, clients can develop a plan whereby the policy’s cash value builds up as quickly as they’d like. Then, they can access that money easily, because many policies do not feature a penalty for early access.

A tax-deferred haven

The money that clients put into a life insurance policy is able to grow without being taxed, which allows clients to put away even more of their wealth for use in retirement. What’s more, the money that gets put into a life insurance policy can often be taken out income tax-free through policy loans and withdrawals.

Life insurance is a critical retirement planning tool, but too many consumers remain unaware of how they can use life insurance to achieve their retirement goals. Financial professionals who speak with clients about all of the benefits provided by life insurance can increase their client base and give their clients peace of mind concerning their future.

4 Major Benefits of a Personal Retirement Plan Infographic Revised

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Highland Capital Brokerage

Highland Capital Brokerage

Highland Capital Brokerage is committed to developing client-focused relationships with financial advisors using our core competencies of life insurance, annuities, and long-term care. We distinguish ourselves by providing point-of-sale support, advanced marketing, and creative estate and business planning techniques.
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