It’s no secret that 2009 was a difficult year for Americans, particularly those staring down retirement. Although many Americans diligently save and invest for their retirement, a recent study by the Center for Retirement Research at Boston College shows that 45 percent of American households are “at risk” of not having enough money set aside for retirement. The number is rising.

Retirees are turning to their whole life insurance policies to see them through the lean years. Provided that premiums are paid and the policy hasn’t been surrendered, whole life insurance provides policyholders coverage for the insured’s entire life. Term life insurance, on the other hand, only provides coverage for a fixed period, which is stated in the policy.

Most Americans purchase life insurance for death benefits, but financial professionals boast about the other advantages of a whole life policy. Whole life’s flexibility allows policyholders to supplement their retirement as their needs and circumstances change, and can be used for planned long-term needs or financial emergencies.

While stocks and mutual funds fluctuate with the market, whole life insurance is predictable, guaranteeing annual growth. The reliability alone leads many retirees to believe their whole life insurance policy is the best value for their buck. Whole life policies come with several guarantees, including a guaranteed death benefit, guaranteed premiums, and guaranteed cash value growth.
When grandchildren request help with college tuition, children request a loan, medical expenses mount, and long-term care costs more than expected, policyholders can count on the cash value of their whole life policy.

For questions regarding whole life policies or and other life insurance for seniors choices, talk to an expert at Puritan Financial.
 

Puritan Financial Companies is a diversified financial services firm specializing in helping people from their peak earning years through retirement to secure their financial future. Visit Puritan Life Insurance at www.puritanlife.com. The information contained in this blog post is for informational purposes only and should not be construed as legal, tax, or investment advice.