Posted by 
Although the U.S. stock market is going up like a rainbow at the end of 2020, looking at 20 years or a longer time scale, if there is a rise, there will be a fall. If we encounter a stock market recession in the year of our retirement,Retirement planning policies can not only increase retirement savings, but also make up for the gap.
If you encounter a sharp drop in the stock market when you retire, if you then withdraw money from the traditional personal retirement account as your retirement living expenses, you will have a "worse worse" feeling.
(>>>Recommended reading:Evaluation｜ Investment and wealth management account VS cash value life insurance policy account, comparison of advantages and disadvantages and selection strategy）
At this time, choose to receive it from the policy account,The biggest loss and risk are controllable and quantifiable,This is a major advantage of using cash value life insurance to supplement retirement income planning, and it has been favored by many policyholders.
American Life Insurance GuideThe editor of also received an email from a reader this week, raising some questions about retirement planning policies.To this end, we invited a life insurance columnist from HummingLife Heather,on"Frequently Asked Questions"和"Common Misunderstandings"The two parts are shared in this article to help policyholders understand some details of life insurance retirement planning.
Frequently asked questions: How much does it cost to invest in a life insurance retirement plan?
In order to wait until the day of retirement, and to accumulate sufficient cash balance in the policy account, we usually need to deposit much higher than the required premium every month to "recharge" the policy account.
For example, suppose we are going to open a 100 million dollarSum assuredAssuming that the insurance company allows a minimum premium of $8000 and a maximum premium of $20,000 per year for the cash value life insurance policy account, then paying $20,000 will significantly reduce the risk and increase the ability to accumulate cash value.
This is also the problem that confuses some policyholders the most.Why do you spend $8000 for something you can buy for $20,000?
If we transform into the thinking mode of "investment and financial management", this problem will be solved: we are not spending money to buy a standard consumer product, but are choosing financial products. The more money we invest, the more the principal will benefit. The more possibilities for growth, the higher the potential return.
Therefore, in order to take more money when you retire, it is a reasonable practice to save more money during the saving phase.
This way of depositing premiums is calledOverFund.The excess premiums will go directly to the policy account, and tax deferred growth will occur.
(>>>Recommended reading:Must-read for policyholders!6 insured military regulations that cannot be violated ）
Common Misunderstanding: This is the only life insurance retirement account
Some policyholders think,"As long as it is life insurance, it can be used as a supplementary retirement account"Or think,"There is only one life insurance company in the market that can do such a plan."
This is one of the most common misunderstandings and will bring us potential losses of funds.
"Life insurance" is just a general term, just like the term "car".
A bicycle is a car, an off-road four-wheel drive is a car, and Formula 1 is also a car. However, it is best to use Formula 1 cars that can be used on the track to achieve racing goals.
In the same way, there are several types of "life insurance" that have been developed over the past century.The different types are suitable for different areas of life, such as:
- Term life insurance, A short-term protection plan for family finances.
- Savings Participating Life Insurance(Whole Life), can be applied to a variety of life scenarios.
- Guaranteed life insurance(GUL), can be applied to a variety of life scenarios.
- Securities Life Insurance(VUL), can be applied to a variety of life scenarios.
- index life insurance(IUL), can be applied to a variety of life scenarios.
Regardless of the earliest appearance"Term life insurance", still upgraded"index life insurance",They are not a specific product term——It's like the word "F1 formula car", everyone is called "F1 formula car", but there are many manufacturer teams in the market that are producing and competing, such as Ferrari, Honda, Renault and so on.
Similarly, taking index insurance (IUL) as an example, there are many different types of insurance in the U.S. market.Life insurance company, Are producing and issuing specific index insurance products (For details, please refer to "American Life Insurance Company and Product Evaluation"Section).
Based on specific products, coupled with professional program design and maintenance management-through this way of use, life insurance finally completes the functional purpose applicable to different areas of life.
To summarize, use "Life insurance plans to supplement retirement income"It is not a specific product, nor is it a patent of an insurance company, but refers to a financial management strategy and method.
The key to using life insurance to supplement retirement income planning lies in communication and cooperation with financial life insurance experts.Choose specific products with better performance, ReachedMore specialized goal-oriented design solutionsTo help us realize more retirement income potential. (End of full text)
