Annuities, IRAs, and 401(k) plans seem to be synonymous with planning for retirement. But did you know that having life insurance for retirement is another great way to add to your financial portfolio?

Keeping your family financially stable is important, and each family has different needs. That’s why there are several types of life insurance plans to choose from. Below are the four main types of life insurance.

Term Life Insurance

If you want affordable life insurance for retirement that will help cover short-term finances, term life insurance might be what you’re looking for. It’s a 10-, 20-, or 30-year policy that provides a standard death benefit. However, a person with this type of policy must die within the term (or the term renewal) of the policy for beneficiaries to receive the benefit.

One benefit to term life insurance is that it includes fixed premiums, so your monthly costs won’t increase. Because it offers fewer benefits, term life insurance is usually lower cost than whole or universal policies.

Can you Use Whole Life Insurance for Retirement?

Whole life insurance can be a good choice during your retirement planning to help your family’s finances. It’s a low-risk, predictable investment that grows in value for you and your family. Unlike term life insurance, whole life insurance is ‘permanent.’ This means that there’s no set duration for coverage. Your policy will remain active as long as you pay your premium.

Whole life insurance premiums can also go toward building cash value over time that you could use during your retirement. Essentially, you’re getting life insurance and cash accumulation wrapped into one policy. The cash accumulation portion of whole life insurance is what makes it different from term life insurance.

Most whole life insurance pricing is based on factors such as life expectancy, medical history, and gender. Since whole life insurance can have more benefits than term life insurance, the premiums are usually higher. But you’ll be guaranteed a death benefit, fixed premiums, and access to the cash value of your policy.

Life is filled with surprises. Having whole life insurance for retirement can give you an extra boost of financial stability if you ever need it.

Universal Life Insurance

Similar to whole life insurance, universal life insurance is a ‘permanent’ policy with the ability to borrow against tax-deferred cash value. Universal life insurance for retirement gives you the flexibility to tailor the coverage and premium based on your needs. Combining the choice of term life insurance’s length of protection and the cash value accumulation of whole life insurance gives you a customized policy.

With a universal life plan, you can choose when and how much you want to pay for your premium. The cost can be lower than whole life insurance premiums because cash value is not always guaranteed.

Final Expense Life Insurance

Final expense plans help cover the costs of a funeral and outstanding debts you may leave behind. The average cost of a typical funeral in 2019 was $9,135, and that doesn’t include extra charges for items like flowers, monuments, and obituaries.1 Final expense life insurance could help your family manage these expenses during a difficult time.

How To Find Life Insurance For Retirement Planning

With multiple life insurance types and policies to choose from, it may be overwhelming to choose one on your own. Let HealthMarkets do the searching for you. A licensed agent can help you find life insurance for retirement that fits your unique needs. Find your local licensed agent today.



1. National Funeral Directors Association. 2021. Retrieved from,the%20median%20cost%20is%20%249%2C135.

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