People may think life insurance has nothing to do with retirement but, the truth is, life insurance has everything to do with it.
See, it's the life insurance you bring into retirement that gives you the license to spend your money. The people who enter retirement with permanent life insurance will likely enjoy a much happier and more successful retirement than those who don't.
Those with permanent life insurance are actually able to spend their money and not live a "just-in-case" retirement. Let's take a glance at four simple ways clients can use life insurance in retirement.
(1) Using life insurance to leave a legacy
Even if your clients don't want to leave any money to their children, they may want to consider doing something for their grandchildren. Whether they are planning to use their benefit to pay for some of their grandchild's college tuition, a car when they turn 16, or money for their first house, it is important to discuss how they want to be remembered.
Many life insurance policies can offer significant liquidity in case of an emergency. Some may even offer a money-back guarantee at any time. If your clients are trying to give their grandchildren a head start in life, I would recommend discussing this option with them.
(2) Using life insurance for charitable giving
Many retirees volunteer and become actively engaged in a local charity, church, or organization. See this as an opportunity to help clients become involved with their community. If financially viable, people heavily involved with the organizations would be ideal candidates to make a larger impact on the group with the use of life insurance.
Life insurance enables people to donate dollars while only spending pennies. With life insurance, your clients can potentially double their capacity to make a charitable gift and have access to their surrender values if the need ever arises to cancel their policy.
