Something everyone should know is how life insurance can provide income in retirement. Many may not realize all the benefits to permanent life insurance.
Life insurance products seem to be confusing to most people, according to a survey by Northwestern Mutual Life Insurance Company. In fact, the survey showed almost 50 percent have the false notion that permanent life insurance has less cash value than term life insurance.
But consumers are not the only ones missing out on a great investment tool in life insurance. Many investors are also neglecting to circle in on life insurance, said Dave Simbro of Northwestern Mutual. He added investors may not fully understand how life insurance works to offer it as an investment strategy for retirement.
“It’s ironic that most people only see the guaranteed protection and miss the array of benefits permanent life insurance offers throughout someone’s life,” Simbro said.
Depending on the type of policy purchased, life insurance can provide income in retirement. Having funds available during later years can be particularly helpful when covering medical expenses.
Furthermore, the coverage can be extremely valuable to those with young families. Funds from a policy can help ensure children will have money for college and other necessities growing up.