Life Insurance: Retirement Protection
Life insurance, when purchased appropriately, can supplement your retirement income, sustain your loved ones in times of crisis, pay debts and even magnify your charitable giving. Getting to know the benefits of life insurance can prepare you to speak with your Thrivent Financial representative about the types of insurance that might best serve you.
Income Replacement
Your retirement income probably comes from several sources. Your portfolio might include a defined benefit pension plan, Social Security benefits and personal savings. These are all good options, but the picture changes if you die before your spouse does.
Pension income for many might go away, leaving your spouse with the greater of your Social Security payments. In addition, expenses may increase due to single tax-filing status, health care costs, maintenance and other unforeseen lifestyle costs.
Life insurance death benefits can help ensure that the surviving spouse has the financial resources needed for the remaining retirement years.
Supplemental Retirement Income
A life insurance contract, possibly funded by the repositioning of taxable assets, can ensure a steady flow of dollars to supplement your family's income in the event of a premature death.
If you and your spouse are fortunate enough to live up to or over your life expectancies, life insurance can give you control over the amount of taxes you pay during retirement. In addition, the potential to receive income that is not taxable may be available through partial surrenders or by taking out loans depending on the type of insurance contract you purchase.*
Estate Preservation
If your estate size and tax rules at the time of your death allow, you may be able to pass proceeds from a cash-value life insurance contract to your heirs without incurring any estate tax. If, however, estate taxes are likely, a Thrivent Financial representative may help you determine if setting up an irrevocable life insurance trust to pay your estate tax is right for you. Consult your estate-planning attorney to help draft and review all documentation prior to signing.Legacy Extension
If the welfare of your spouse and children is secure, consider changing your contract's beneficiary to the charitable organization of your choice. In addition, there may be tax advantages to creating a gift of charitable life insurance. While Thrivent Financial for Lutherans and its respective associates and employees cannot provide legal, tax or accounting advice or services, they can work with you to find solutions that best fit your needs.
Ready to learn more? Contact a Thrivent Financial representative and help secure your tomorrow, today.
* Loans and withdrawals will decrease your death benefit and the cash value available to pay insurance costs. Surrenders may generate an income tax liability and may be subject to a surrender charge. A significant taxable event can occur if a contract lapses with an outstanding loan. Loaned values may be credited at a lower rate than un-loaned values.
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