Forums » Life Insurance

Education costs and retirement income

    • 144 posts
    March 1, 2014 9:11 AM IST
    • Education Costs:


    a)     Parents can purchase term life insurance to help ensure that funds will be available when

    needed to provide for their children’s educations.


    b)      Parents can also use permanent life insurance to provide educational funds even if the

    parents are still living during the child’s college years.


    c)      Permanent life insurance can be used to accumulate savings that are available for future



    • Retirement Income:


    a)      The savings that accumulate in a permanent life insurance policy can be used to purchase

    an annuity when the owner of the policy approaches retirement.


    b)      An annuity will guarantee a series of payments, usually on a monthly or an annual basis,

    either for a limited period or for life.


    c)      For the policy owner, the permanent life insurance policy will have served the original

    purpose of providing insurance protection while it was needed during working years.


    d)     Later in the policy owner’s life, the policy’s accumulated savings can be used to fund

    another benefit – retirement income.


    e)      The accumulated savings may also be used to meet other retirement needs, such as

    paying off a mortgage, or buying a retirement residence.


    • Other Personal Needs:
    • Some individuals purchase life insurance policies so that they can donate the proceeds of the policy to a charitable organization, such as a church or an educational institution.


(200 symbols max)

(256 symbols max)