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Help Minimize the Risk of Outliving Your Money With Life Insurance

Insights & Ideas Team •  January 18, 2016 | Your Finances

You’ll probably spend decades saving for retirement and planning for a time when you can travel more, spend time with family and friends or pursue your hobbies. But living the life you envision in retirement takes more than setting aside a certain amount of money in a 401(k) or IRA during your working years. 

The wealth you accumulate has to get through retirement and last as long as you do.

“We know that people are worried about outliving their money,” said Greg Balian, Northwestern Mutual regional director of financial planning. “And yet in a recent Northwestern Mutual survey, more than half (52 percent) say they have not taken any steps to address the risks that commonly derail their plans for retirement, such as longevity, market volatility, inflation, the cost of long-term care or health care costs.”

One way to minimize the impact of some of these risk factors is to make use of one of the most flexible financial assets available: life insurance cash value. Along with providing a death benefit, permanent life insurance policies build equity (cash value), which grows tax deferred and can become a source of funding you can use at any time, including in retirement.

In this excerpt from our most recent webcast, A Powerful Asset: 5 Benefits of Life Insurance While You’re Living, Balian and host Betsy Hoylman discuss the ways in which life insurance cash value can be used to minimize the six most common risks to financial security in retirement.

To view the entire webcast, click here.

Utilizing the cash values through policy loans, surrenders of dividend values or cash withdrawals will or could reduce the death benefit, necessitate greater outlay than anticipated and/or result in an unexpected and/or taxable event.

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