In our linked feature, Rick Kahler, Kahler Financial Group’s founder, provides expert advice on how to use insurance policies to secure a couple’s investment plan for providing retirement income. Let’s see what he says.
Life insurance has a variety of uses. Traditionally, it’s a hedge against lost income in the event of untimely death: the payout keeps the lights on, covers debts and tax bills, keeps the kids in school. It can also be used to protect a couple’s investment plan aimed at generating income in retirement, should death or disability strike one of them before their design comes to fruition.
Mr. Kahler uses the example of a married couple, both well employed, who contribute to shared investment accounts that will fund their retirement. One half of the couple makes $60,000 a year – that’s what they live on. The other one makes more than double that amount, which they invest for retirement. In this scenario, the couple started investing for their senior years rather late, but they still have enough time to guarantee a $60k annual income once they both stop working.
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But what if one of the two breadwinners suddenly dies – in particular, the bigger earner? There are several things the couple can do to protect themselves. A life policy, carefully chosen to match the individual circumstances of the couple, would be the first matter to sort out. This should provide enough of a payout to fund their savings plan until retirement age. A matching disability policy would be smart, too, to cover any income shortfall if one of them were to be injured or suffer a debilitating illness.
There are other ways for couples to protect their retirement dreams. Check out the article linked below.
For more information, please read:
How To Use Insurance To Safeguard Your Retirement | Forbes