Why Life Insurance is Important to Think About Before You Reach 50

July 14, 2022

Most adults understand the basics of investing in life insurance and opting for the right retirement plans, but the basics are only a place to begin. Many people don’t understand how essential it is to ensure your insurance coverage and retirement plans before you reach your middle-age years. You should know about retirement planning, insurance, and financial stability before age 50.

The Benefits of Early Retirement Planning

We all have to plan for retirement, and it’s essential to understand why it matters. The more time you plan investing in life insurance and retirement planning, the more time those funds have to grow. Thus, it can give you some nice income for your retirement years. If you start your retirement planning and investment in your 20s, you’ll find that your retirement funds will grow significantly with interest and additional contributions over your adult life.

The Key Elements of Proactive Retirement Planning

Understanding the importance of retirement planning in early adulthood is only the beginning. You must also appreciate the critical elements of creating a comprehensive retirement plan. For example, when you’re building a retirement plan in early adulthood, this is the time to take advantage of 401k opportunities, annuities and any other retirement plans and investment funds your employer may offer. The sooner you contribute to funds like this, the greater your return is likely to be and the more conservative you can be about investment.

Life insurance is equally important to your retirement plan. Opting for a whole-life policy in your early adult years gives you the benefit of locking in an affordable premium with an approach that gains cash value. You can borrow against that cash value throughout your retirement if necessary. However, you must understand any tax implications of accessing that money.

The Fundamentals of a Life Insurance Retirement Plan

In addition to whole or universal life policies that build cash value, life policies should be part of your retirement plan. You pay larger premiums up front to build sufficient cash value if needed for retirement.

Life insurance should be an essential part of any stable retirement plan. Establishing your funds before age 50 allows you to lock in the best rates and build cash with minimal investment.

About 1891 Financial Life

At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.

Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs no matter what stage of life you’re in.