Saving for retirement is not an area of strength for many Americans today. According to one recent survey, one-third of Americans have no retirement savings at all, and 23% have less than $10,000 saved. Whether it's lack of education or a shift in priorities, the idea that so many people in this country will be entering retirement with little to live on is disturbing at best. One potential saving grace lies in the hidden value of some life insurance policies. Here are just four ways that your life insurance policy can provide some security in retirement.
Cash Value Benefits
If you have a whole life policy, a cash value component accumulates over time. When you reach retirement age (or before), you can either make direct withdrawals from your policy or you can borrow against the accumulated value of your policy. These funds can be used to meet your expenses in retirement, and any borrowed funds are paid back out of the insurance proceeds when you die.