4 Types of Retirement Insurance You Want to Have

As you near your last of work , you will face a ton of questions about what is important for the future. With a fixed income, prioritizing your spending and cutting unnecessary expenses is a natural part of the transition into your golden years. It’s relatively easy to decide on fewer cable channels or go out for dinner less, but what about something like insurance policies? Having coverage for your health and assets is important, which creates a dilemma surrounding what absolutely must be protected and what can do without. Selling a car so there’s only one to insure will result in savings, of course, but what else? Regardless of what’s on your table, here are four types of retirement insurance you want to have:
1. Health Insurance
Medicare is the primary source of healthcare coverage for retirees, obviously, but there are significant differences between the services included in your employer health plan and what is offered by the federal government. Things like prescription drugs and outpatient services can leave the individual paying a hefty portion of the fees, so scout out the best plan to fill in the gaps and help you avoid a big hit.
2. Home Insurance
If you’re like most people, your home is your primary asset. Even in the most volatile markets, property is among the safest investments a person can make. Being robbed of treasured memories due to a catastrophe would be hard enough, but it can be financially devastating, too. Before you move into retirement, be certain your policy offers the protection you need at an affordable rate.
3. Life Insurance
Chances are good you already have a policy to ensure your family is provided for, so you won’t need to purchase a new plan. What you might consider, if you decide to keep coverage in place, is the amount of protection you have. If your outgoing expenses are relatively minimal – the mortgage and cars are paid off, for example – you might be able to decrease the pay out and still take care of your loved ones.
4. Travel Insurance
With all your newfound free time, you might be planning to drive around the country or fly all over the world. There’s a lot you might encounter along the way, so it’s smart to make sure you are prepared in case of an emergency. What happens if you have a serious accident while driving around Italy? How will you pay for an extended hospital stay? Secure a traveler’s policy before you leave and cover all the angles.
So, retirement planning is must for you, if you have not yet started its still not late.

How Beneficial Can A Whole Life Insurance Be?

When it comes time to purchase life insurance, there are always a lot of questions. Within the industry itself, there are competing claims that muddy the water, leaving one to wonder which type of policy is best for them. There are so many advantages of Whole life insurance over the less expensive term life options, though at greater cost. In the long run, the financial goals of the individual purchasing the insurance are crucial, as well as risk tolerance and income, to a lesser extent.
What draws most people to whole life insurance policies is the security they provide. For the entire life of the policy, premiums and face value are set in stone permanently. What this means is that, due to inflation, the policy will end up costing less as time passes. Your minimum agreed benefit and cash value will be paid out in the event of your death without any further medical examinations to determine insurability, unless you decide to alter the face value or protection clauses. (In most cases, though, it’s simpler to purchase an entirely new policy to cover the balance, if you decide you’d like more coverage.)
Over time, a whole life plan will build up a cash value that term life plans cannot. For those looking to utilize the policy as part of retirement planning, this is a major advantage. When the premium is paid, part of it will be put into the insurance company’s general fund and part will be set aside for the insured. In effect, the plan becomes a like a savings account or piece of real estate that develops a market value to support loans or pay other expenses in emergencies, such as medical care during a chronic or terminal illness. These loans or withdrawals will be repaid out of the death benefit if there are any remaining balances, but the ability to defer tax on these monies until they are disbursed is very appealing – and, even then, a portion of the gains may not be subject to income taxes.
Those funds placed into the insurance company’s larger pool give whole life insurance policies the added possibility of annual dividend payments. This feature is a bonus, as the availability of these extra funds will determine whether they are paid out or not in a given year. If they do, they are a major advantage to the insured, as they can help the individual increase the death benefit in the event of rising costs or for added protection. Some like to use them to cover part or all of premium payments or, in other cases, cash the dividends out for supplemental income during retirement.
There are a lot of differences from company to company and state to state, so be sure to check with a trusted insurance agent. Some whole life insurance policies are unavailable to creditors or lawsuits. Others have riders which stipulate the premiums must be waived if the insured suffers a partial or permanent disability. These advantages can be awfully tempting, which makes it all the more important to discuss them with qualified professionals, particularly your accountant or financial planner if you are planning on utilizing your whole life insurance policy as part of your retirement portfolio.

Benefits of Universal life Insurance

What would be the exact way to define Universal Life Insurance? Keeping in mind its present existence it is a type of permanent life insurance policy. This includes both the aspects of term life and whole life insurance. In the present day and age, as an insurance product it had evolved a lot.
Benefits of Universal Life Insurance
Let us have a look at some of the advantages of this type of insurance:-
1. Helps to build cash value
You can build up a cash value in this type of insurance over a stipulated period of time.  If you want you might as well borrow or withdraw from the total cash reserve.  The tax for this cash is postponed and tends to grow at a variable rate.
2. There is Flexibility
One of the major benefits of Universal Life Insurance is the flexibility with which you can adjust the coverage amount as well the premium amount over time.  The policy holders can also adjust the time within which they intend to put the money back to the scheme.
3. No option for lapses
This would mean that, as long as the universal insurance policy holder keep on making the minimum payments there would be no lapse.

Irrevocable Life Insurance Trust

The irrevocable life insurance trust is a special type of a trust which allows the exemption of the life insurance amount for the estate tax that you are paying. However, it cannot be changed which makes it at times unfavorable. In spite of some of the drawbacks, these types of trusts are very much preferred because they provide good benefits and tax savings on the estates.

The main objective of the ILIT (Irrevocable Life Insurance Trust) is to reduce the taxes by a considerable amount. However, you need to go through the decisions to forgo an ILIT as there are regular changes in the estate tax rules which may make your money fluctuate over a short period of time.

Irrevocable life insurance trusts also allow for marital exclusion on an unlimited basis. As such, no estate taxes are applicable on the life insurance proceeds that are paid to the spouse after the death of the main applicant. However, in case of the death of surviving spouse, the proceeds or the amount are transferred to his or her estate.

While setting up an ILIT, it is advisable that you take advice from the attorney. An estate lawyer who is expert in estate planning is the ideal choice. You also need to decide on the trustee, the beneficiary of the life insurance and other factors before deciding on the policy.

Benefits of Retirement Insurance


Retirement Insurance is an important aspect of retirement planning. A proper planning is required to help you have financial stability and enjoy better benefits in the post retirement period. As such, one should have a proper retirement insurance plan to make the post retirement period secure and safe.

There are a number of retirement insurance plans that you can opt for as per your needs and preferences. By selecting the right retirement insurance plan, you can enjoy better benefits. Insurance is perhaps required in every sector of our lives and having a proper idea of the insurance benefits will help you select the right plan.
Insurance is very much needed in sectors like health care. Recent surveys show that more and more retirees are opting for health insurance plans to cope with the rising health care costs. You can choose from various types of health care insurance benefits such as Medicare, Medicaid and so on. One can individually purchase health care plans as well or sometimes employers also provide health insurance plans.
Life insurance is also a major part of retirement insurance benefits. A proper life insurance program makes you safe and secure. There are different kinds of retirement insurance plans such as term life insurance, endowment funds , whole life insurance,  and so on.
Home is perhaps one of the most important aspects of our lives. It provides us shelter, security, safety and in fact an identity. As a result, it’s important that you should try to prevent your home against any type of emergencies or accidents. Insurance is the best way to take care of your home and keep it secure. Some of the well known home insurance plans that you can choose include living expenses coverage, swelling property, and personal liability and so on.
Apart from these, there are also some more retirement insurance plans which keep you safe and secure in the years after you retire.