Do you want to ensure your retirement income keeps up with the rising costs of living? You’re not alone – low-interest rates, stock market volatility, and inflation mean that many retirees are looking for ways to get reliable returns from their investments. Whole life insurance is often overlooked when it comes to providing long-term savings — but depending on how it’s used, it can be tailored to provide inflation-beating returns for years or even decades into the future. In this post, William Schantz looks in more detail at what whole life insurance can do for you in the context of retirement planning.
William Schantz On How Whole Life Insurance Gets You Inflation-Beating Retirement Income
According to William Schantz, whole life insurance is an investment vehicle that can provide a steady stream of inflation-beating retirement income. It is designed to pay out a death benefit when the policyholder passes away, but it also functions as an asset that can be tapped into during retirement.
Whole life policies are “permanent” policies, meaning they do not expire or require renewal like term life insurance. As long as the premiums are paid, and the policy remains in force, the death benefit will remain untouched and can help provide financial security for your family after you pass away. But there’s more: The cash value of whole life insurance policies accumulates over time and can be used to supplement your retirement income.
Whole life insurance policies provide a number of benefits that make them attractive to many retirees. They build cash value, which means they grow in value as the policyholder ages. This growth is tax-deferred, meaning you can withdraw money from the policy without having to pay taxes on it. Additionally, any interest earned on your premium payments is also accumulated tax-free and can be used as part of your retirement income.
Unlike regular investments (such as stocks and bonds), whole life insurance offers downside protection. Even if the stock market crashes or other financial instruments lose value, whole life insurance provides guaranteed returns with no risk of loss. The death benefit is fixed at the time you purchase your policy and will not decrease due to market changes or other external factors.
Whole life insurance also provides a number of other benefits, says William Schantz. The cash value grows with time and can be used to finance long-term care or to provide an income stream if you are unable to work due to health reasons. Additionally, the death benefit can often be used as collateral for loans and other financial products, providing access to additional funds during retirement.
William Schantz’s Concluding Thoughts
When it comes to retirement planning, whole life insurance offers a number of advantages that make it an attractive option for many retirees. Its ability to accumulate cash value tax-free, provide downside protection in volatile markets, and guarantee a fixed death benefit make it one of the best ways to ensure you have enough money for your golden years. While it’s important, as per William Schantz, to consider all of your retirement options, whole life insurance can be an invaluable asset in helping you reach your long-term financial goals.