What is "retirement planning" with life insurance?

Retirement planning with life insurance primarily involves utilizing specific life insurance products to create cash value or a death benefit that can supplement retirement income. This strategy allows policyholders to not only secure financial protection for their beneficiaries in the event of their death but also potentially access funds during their retirement years.

Certain types of life insurance, such as whole life or universal life, accumulate cash value over time. This cash value can be borrowed against or withdrawn, providing a source of funds that can help cover living expenses in retirement. Additionally, the death benefit can be a crucial aspect of ensuring that loved ones are financially supported after the policyholder passes away, further emphasizing the role of life insurance as a component of a comprehensive retirement plan.

By choosing this approach, individuals can create a financial strategy that combines protection and potential income, making it a valuable option for those looking to secure their financial future.