Is Life Insurance Needed for Retirement Planning?

 In Blog

Life insurance is not just for the younger population, the parents of children, or the breadwinner at home. Life insurance plays an important role, even in the later stages of life. To protect your interests, any solid retirement plan needs to be backed up by insurance.

Life Insurance: A Vital Part of Your Retirement Plan

As you are planning for retirement, many things will come up. Life insurance is vital for your retirement plan to be successful. Why? You could have the most “solid” retirement plan, but the unexpected is exactly that, unexpected, and if or when that happens, it is better to be safe than sorry.

Having life insurance as part of your retirement plan can bring several benefits like protecting your income, helping manage taxes and allow¬†your family to have peace of mind, in case anything were to happen to you. So, having the right type of life insurance and an appropriate amount of coverage, is not just another box you need to check in your retirement to-do list, it’s a vital part of your plan which can make it succeed. These tips will guide towards using life insurance in wise ways in your retirement plan:

Safeguard Your Income for Retirement

Safeguard Your Income for Retirement

Thinking of death is no one’s favorite pastime activity, however, it is necessary in order to establish priorities in case something were to happen. Life insurance can be used to counteract the lack or loss of any type of retirement income, ensuring that there is enough money to make up for what’s lost and allowing the surviving spouse and family to sustain their current standard of living.

Protect Your Retirement Savings Plan

For married couples, it is recommended that each spouse purchases a 10 to 15-year term life insurance policy before retiring, in order to keep your savings plan safe. Term life insurance premiums are very affordable, which is a plus, as this is not the best time for something that could potentially become a financial burden.

Take Advantage of Tax Preferential Treatment

A retirement income plan that includes life insurance, gets tax-preferential treatment which gives you more flexibility as to which dollars to use during retirement. Life insurance can also work against potential tax rate hikes.


Life insurance is meant to protect you in all aspects of life, not just when you’re fresh out of college, but in every financial plan, including your retirement plan. Stop by our office in Colorado or give us a call for more information about how life insurance is important to your retirement plan.

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