|Question: Can I use life insurance to help me save for retirement?|
If you're close to retirement and already have a life insurance policy with sufficient cash value, you can use that cash to help finance your retirement. But if you're young and looking for a savings program for your retirement, there may be better ways than using life insurance.
Life insurance is designed to protect against unexpected economic loss, so if you don't need a death benefit, you might want to look into a tax-sheltered program such as a 401(k) that is specifically designed for long-term savings. This is particularly true if you're still young and will continue working.
If you need death benefit protection and tax-sheltered growth on your savings, cash value life insurance is one tool you might consider using as part of your overall savings plan for retirement.
If you already have a life insurance policy with a cash value account, you can use the cash in any of the following ways:
Before taking any of these steps, you'll want to discuss your retirement savings program with a trusted financial advisor.