When you look at the big picture, retirement, estate, and legacy planning are completely overwhelming. For most of us, the idea of saving enough money to support ourselves during retirement, handle our burial and estate, and leave a meaningful legacy to our loved ones seems completely impossible without living throughout retirement on a shoestring budget.

Before you lose hope, a better idea would be to explore the ways that a life insurance policy can help supplement the financial demands of retirement, as well as estate and legacy planning.

Life Insurance for Retirement Planning

The right life insurance policy can provide tremendous benefits during your retirement. A permanent policy that accrues cash values can be used as a tax-free source of income to help you manage the expenses associated with inflation, long-term care and medical treatment. Life insurance policies also have riders that can pay out the majority of the death benefit if you’ve been diagnosed with a terminal illness. This will help you and your family handle all of your affairs while ensuring that you remain comfortable.

Life Insurance for Estate Planning

After you pass away, before your assets are distributed, the executor of your estate may need cash in order to pay for expenses such as estate and property taxes, property maintenance and repairs, and property insurance. Instead of attempting to spend as little as possible during retirement to ensure that there’s cash available to your executor, you could secure a life insurance policy. The life insurance death benefit can provide an appropriate resource to meet all of those needs, giving your executor some much-needed liquidity while also sheltering your family from the financial burden of funeral expenses.

Life Insurance for Legacy Planning

There are many people who want to leave a legacy behind after they pass away. For some, the legacy is about providing for their loved ones and sending their heirs to college. Still others want to leave a donation to their favorite charity, school or organization. While every financial gift is appreciated, those who want to leave a substantial, meaningful legacy without scrimping and saving through their working life and retirement might instead consider a life insurance policy. The policy’s death benefit can be used to fund an ongoing scholarship gift, pay your grandchildren’s college tuition, pay off your children’s mortgages, donate computers to your local school, and so on.

Life insurance gives you an affordable, manageable way to supplement your retirement income, strengthen your estate plan, and leave behind an impressive legacy. It’s the perfect tool for pre-retirees and retirees who are intimidated by the financial burdens they face. Be sure to contact your financial advisor to help you design a life insurance policy to fulfill all of your retirement goals.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or products may be appropriate for you, consult with your financial advisor.

The Retirement Pros
June 2015