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Five Ways Insurance Policies Can Save Your Retirement

When planning for retirement, it’s important that you don’t focus solely on your retirement savings accounts because true diversity is about having many different resources for cash and hedges against risk. That’s why it’s a good idea to branch out and use insurance to create a firm foundation for financial health during your golden years. Curious about the ways insurance can help save your retirement? Here are five quick things to consider.
1. Insurance protects your assets: From home insurance to long-term care insurance, there are many policies that can be used to prevent you from dipping into your savings while still ensuring a quality lifestyle for yourself and loved ones.
2. Insurance replaces your valuables: As you age, you want to preserve your money for necessities and emergencies, not for replacing assets that are lost, damaged or stolen during an incident that could have been covered by insurance. Home, watercraft and auto insurance will protect your property and, as a result, your savings.
3. Insurance preserves your legacy: Many people become extra frugal during their retirement in order to ensure they leave something behind for their loved ones. But with the right life insurance policy, you can provide an inheritance without suffering through your retirement on a too-tight budget.
4. Insurance can accrue accessible cash values: Life insurance isn’t just about providing an inheritance. The right policy can also provide tax-free access to cash values. Tap into this resource in order to fund unexpected shortfalls after retirement. But remember, if a loan is not paid back, it could reduce your death benefit.
5. Insurance has riders: Insurance policies like long-term care and life insurance can be designed with specialized riders that help you deal with inflation, terminal illness and more. Talk to your agent about the various riders you can choose from.
A solid retirement plan requires more than just savings. It involves the strategic purchase of insurance to help support the foundation of your financial health and preserve both your physical and liquid assets. It offers you control over your future that you just can’t get otherwise.

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