Question by  Stevek863 (33)

Can I use my life insurance policy to help finance my retirement?

I am 57 years old and will be retiring next year. I have a term life insurance policy and would like to know if I can use funds from this policy.


Answer by  Brendawith (464)

If it is truly a TERM life insurance policy, there is no cash value. If it is a universal or whole life insurance policy, check the surrender value.


Answer by  Karen54 (971)

A standard term life policy does not build any cash value. You are generally paying for the actual cost of the insurance for a specific term. Check with your agent.


Answer by  John (9008)

A term life insurance policy will not pay unless you die. A whole life policy could be used for retirement, but a term life policy cannot.


Answer by  tamarawilhite (17883)

A term life insurance policy only has value upon your death. There is no cash value investment or savings account within the insurance policy to borrow from or to cash out. Only whole life insurance has the cash value within it, though that product has low rates of return compared to straight investing.


Answer by  Matthewbrown26 (22)

Well, there are many insurance plans or policies by company. It depends on what type of policy you have obtained. Contact your insurance agent for more information.


Answer by  Rubberchicken (819)

No. Term life insurance has no value and you cannot borrow against its value. Double check your policy and make sure that it isn't a whole life, universal life, or variable life policy. If it is, then it has cash value that you can borrow against. Otherwise, look for other ways to fund your retirement.


Answer by  Mike39 (320)

Usually term insurance policies, as opposed to whole life policies, don't have any cash value, so the answer to your question would be "no".


Answer by  MarkWatrous (729)

No, unless you are mistaken about the type of policy you have. If it really is a term policy, there is no cash value in it.


Answer by  Rubberchicken (819)

The only way you can use a term life insurance policy to finance your retirement is for you to die. Term life policies do not build cash value and only provide monies to your beneficiaries upon death, if the death occurs during the 'term.' Since you are 57, it is likely cost-prohibitive for you to purchase a cash life policy.


Answer by  Olivia (21)

Yes I think it will be useful for retirement life. This money will keep your retired life peaceful and happy. Policy you selected will be useful for your future life.


Answer by  Robertj (0)

Life insurance can be a great way to pay a little each month and life insurance is to provide cash to your beneficiary when you die.

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