RETIREMENT PLANNING

RETIREMENT PLANNING

Planning for Retirement Begins with Insurance

When planning for retirement, one of the first steps many investors take is to participate in a company-sponsored 401K plan or put money into a personal individual retirement account. In fact, many Americans contribute to these accounts and then do not pay much attention to their retirement strategy until they reach the senior years. This is a mistake. Planning for retirement involves more than opening up a savings account. There are other financial vehicles that should be considered, based on your individual circumstances and retirement strategy.

Insurance as a retirement planning tool

For many, the priority when planning for retirement is to simply save as much money as possible. But a proper financial plan also protects against potential risks. Some financial advisors recommend that insurance be incorporated into a retirement planning strategy. Various forms of insurance, from life insurance and long-term care to homeowner insurance and long-term disability, can be utilized to manage risk and contribute to your overall retirement portfolio.


Term life insurance for retirement planning


Term life insurance can be an effective retirement planning tool. The policy provides insurance for a set length of time and, in the event of your death prior to the  expiration of the policy, your beneficiaries receive the money. Term life insurance can provide financial protection to those with a spouse or young children who depend upon your income or who depend upon a stay-at-home parent. It can also be relatively inexpensive depending upon your age, health and the individual policy. This also leaves other income for setting up an emergency fund or putting money in low-cost investments.


Many employers provide a life insurance benefit. Review the policy carefully to determine if you need to purchase an additional policy on your own. If so, look for one that is guaranteed renewable and non-cancellable. This is a policy that cannot be cancelled by the insurance company and, as long as the necessary payments are made, they cannot reduce the benefits or increase the premiums.


Permanent life insurance to supplement retirement savings


While term life insurance plans have a set expiration date, permanent life insurance never expires. For that reason, permanent life insurance policies are sometimes utilized as a way to supplement retirement savings. How does this work? When purchasing a permanent life insurance plan, some of the premiums you pay will be placed into a separate account that builds cash value alongside or in addition to your death benefit.


Permanent life insurance also provides the ability to withdraw funds or borrow against the value of the funds in the account. For example, you may choose to withdraw funds to make a mortgage payment, to pay expenses in the event of a job loss, or to pay for retirement. Money is not free, however. Unless these loans or withdrawals are repaid, your death benefit will be reduced accordingly and the policy could lapse if more than the surrender value is borrowed.

 

Retirement planning advice


Developing a proper financial plan before and during retirement is an important tool for all investors. It is important to make informed decisions to ensure you have the funds you need to support your lifestyle through retirement and prepare for the unexpected. Our team can help.


The St. Louis insurance specialists at Senior Health Solutions, LLC can help guide you through the retirement planning process and provide assistance in determining what insurance coverage best suits your individual needs. Our experienced life insurance professionals are available to answer your questions and offer advice. Contact us at (636) 244-4415 or online. If you would like to schedule an appointment but cannot come to us, we will come to you. Do not postpone this important life decision. Contact us today.
 

Important Information
How to enroll into Medicare
We can help you find a Medicare plan in your area to fit your needs. Once you decide on a plan we can walk you through the Medicare enrollment process.
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How much is the cost?
These are the basic costs for people with Medicare. If you want specific cost information (like whether you've met your deductible, how much you'll pay for an item or service you got, or the status of a claim)
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Use this helpful link on the Medicare and Medicaid Services (CMS) website to find and choose Physicians and Other Healthcare Professionals enrolled in the Medicare program, as required by the Affordable Care Act (ACA) of 2010.
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What to do if you don't want a part D
If you want to drop your Medicare Prescription Drug Plan (Part D) and you don't want to join a new plan, you can do so during the Open Enrollment Period, between October 15–December 7 each year. The change goes into effect January 1 of the following year.
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Keeping your work benefits
Employer or union health coverage refers to health coverage from your, your spouse's, or other family member's current or former employer or union.
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Medicare - Advantage Plans
A Medicare Advantage Plan is a type of Medicare health plan offered by a private company that contracts with Medicare to provide you with all your Part A and Part B benefits.
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