FRIDAY, SEPTEMBER 23, 2022
Being self-employed has many perks that your friends may be envious of, but it also comes with a lot of extra responsibility. You’re solely responsible for health insurance, life insurance and saving for retirement—without the luxury of having an HR department set that stuff up for you. But when saving for retirement, you don’t have to focus only on adding to a savings account. Life insurance can help!
If life’s taught you anything, it’s to expect the unexpected. A family emergency may result in the need to access cash quickly. Rather than dipping into your 401k, where funds are taxable and you may be penalized for withdrawing them, you can turn to the tax-exempt reserves in your life insurance policy. Many permanent life insurance policies accrue cash value and allow you to withdraw “living benefits” in times of greater need. This can be a huge help if emergency strikes during retirement, when you aren’t earning as much as you used to and funds may be tighter. 
Let’s say your self-owned business is the sole source of income for your family. Would profits dwindle or stop if you died before retirement? Would your retirement savings to date provide continued support for your family? Life insurance also ensures that your loved ones can continue to make ends meet in the event that you don’t make it to retirement. A grim subject, we know. But an important consideration nonetheless.
Saving up for retirement is no easy feat, especially now that people are living longer lives. Buying a life insurance policy is a great way to sock away some additional cash for later in life, whether it benefits you in life or your loved ones after your passing.
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