You can't watch television or read a newspaper without being reminded of the uncertain times we're in. Disappearing jobs, disturbing stock market losses, the rising cost of living — we don't need to tell you that it's rough out there.

 

This has made retirement planning more complicated than ever. From October 2007 to the end of first-quarter 2009, the market lost nearly $2.8 trillion in retirement savings.¹ While the market has improved since then, many who were counting on their 401(k)s may not even read their account statements anymore.

 

But other factors have muddied the waters for mapping a course toward a financially secure retirement. People are living longer. At the beginning of the 20^th century, life expectancy at birth was 47.3 years. Today, life expectancy is nearly 79 years.² This is good news; but we need to prepare for more years of retirement.

 

And if you thought Social Security would take care of you, think again. In 2010, the maximum monthly benefit was $2,346³ — not enough for many of you to live comfortably.

 

While there are no easy solutions, the purchase of a life insurance policy can guarantee⁴ the protection of your loved ones and also supplement your retirement savings⁵ if the death benefit is no longer needed.

 

Life insurance’s primary purpose is to deliver guaranteed death benefit protection, which can provide a generally
tax-free legacy to your loved ones. But permanent life insurance also carries many living benefits. Cash value is money that accumulates within the policy, tax deferred. This means you do not pay taxes on any of the accumulation within the policy. In addition, you can access that money tax-free though policy loans.⁵  The cash value can also be accessed for college expenses, as collateral for a small business loan, or any other anticipated or unexpected event.

 

In addition to the death benefit protection, life insurance can also be used to supplement your retirement income. As such, it can be a vital piece of the complex puzzle of retirement planning.

 

This educational third-party aticle is being provided as a courtesy by New York Life Insurance Company. For more information on this topic, contact me.