Can a Life Insurance Retirement Plan Help Boost Your Finances?
Answering 7 crucial questions you should be asking…
Published in
8 min readAug 21, 2023
If you’ve ever thought of life insurance, it was probably colored by the instinctive unease of thinking about your mortality — the fact that one day you’ll no longer be around.
After all, that’s the main reason to buy life insurance — making sure that your passing, as traumatic an emotional loss as it’s likely to be for your loved ones, won’t also be a financial catastrophe.
Life insurance can help cover many financial responsibilities:
- Replacing income: With you gone, a significant part of your family’s income will likely also go away.
- Paying off debts: Paying a mortgage, student loans, auto loans, credit card balances, etc., likely makes up a large part of your family’s budget. Paying these off reduces ongoing income needs.
- Succession planning for a business: If you’re a key person in a business, life insurance can provide capital to mitigate problems caused by your passing.
- Compensating heirs: If your estate comprises assets difficult to split, especially if your heirs don’t get along, life insurance can compensate those who don’t get a fair share of such assets.