We all have ideas about planning for the future and where we'd like to see our money invested. Unfortunately, those visions and reality don't always match up. In fact, a study by the Allianz Longevity Project found that Americans are optimistic about living longer, but a majority feel financially unprepared for those extra years. The study found that 79% of Gen Xers, 74% of Millennials, and 57% of Boomers didn't feel that they would have enough money to live according to their life expectancy. The good news is that, with some help and the right life insurance policy, many of these concerns can be alleviated.
The Changing Face of How We Save
Several generations ago, nearly everyone had a pension and a retirement plan. Pew Charitable Trust estimates that only half of American workers today are enrolled in any sort of workplace-sponsored retirement plan. Saving for retirement and, worse, the purchase of life insurance is low for several reasons. Many simply don't understand their needs and others have no interest in thinking about or planning for the future. If this sounds familiar, you're not alone, but that doesn't mean that you're in good company if you wish to retire with money in the bank.
While the gift of time may seem like a curse to some who have fears about their future, it can also be a blessing in disguise. Because you're (hopefully) going to live longer, you also now have more time to build up savings and plan for those twilight years. This doesn't mean that you should continue putting off saving for a few more years. In fact, when it comes to investments and a life insurance policy, the sooner you get started, the better.
A life insurance policy can also provide several types of benefits for retirement.
Benefits of a Life Insurance Policy
In addition to traditional retirement savings, a life insurance policy can provide much-needed funds for retirement and protect your loved ones in the event that your life expectancy doesn't quite live up to the numbers on those charts. A term life insurance policy will only provide a death benefit should you die within the policy term. This is an affordable option and one that many people choose. If you'd like a cash benefit that can be used during retirement as an additional source of funds, you may also want to take a look at a whole life policy. This has an investment element that can be drawn upon or borrowed from once your policy has been in effect for a number of years. Some life insurance policies also have some tax and estate planning benefits.
Today's family often doesn't resemble the traditional model of several generations past. Neither do careers, homes, and our life expectancy. What remains the same, however, is the need to plan for the future, and a part of this is having a sufficient life insurance policy. Contact us with any questions, to request a needs assessment, or to start a quote.