Retirement plans are great to have because it gives you a lot of security when you get older. Here in my place, the employer is required to set aside a certain portion of the salary to cover up for the retirement plan of an employee. Aside from that, I also availed of a life insurance plan wherein I would get a lumpsum payment of cash after a certain number of years. I would then set this fund aside for my additional retirement fund. Do you also have a life insurance that you intend to use as a retirement plan later on?
The cash value in your life insurance plan can be used for many reasons like retirement planning, college payments, emergency funds and death benefits to help those left when you pass. Depending on a life insurance policy for retirement cash takes a few years to build up, a concern would be what vehicle will you put the cash in when you cash it out. Stocks are still down, a lot of people use real estate but it has not turned the corner yet. If you leave your cash in the insurance it is possible that you can get a higher return on the dollar if you use that cash to purchase more insurance.
My life insurance plan does not have a big pay off, so I could never retire on it. My husband and I were just discussing the possibility of using his life insurance as our retirment. We would need to change his policy from term to whole life, which we may be able to do once we sell our house and go full-time in an rv.
Do they? We bought some for my nan and paid into it every month for 25 years and when she died there wasn't even enough to pay for a quarter of her funeral, we had to sell her possessions and dip into our own pockets just to scrap together enough for a basic funeral for her. Absolute con and scam.
