Retiring Soon? Look at Your Life Insurance

Now that you’re about to retire, it’s an excellent opportunity to take a fresh look at your life insurance coverage. It might be that you can give up a policy or two, or that you can change your coverage to better match your circumstances.

How has your situation changed? If you have policies dating back to when you were raising children, you might find that your adult children no longer need your insurance proceeds and investing the premium for your own well-being may be a better option. However, if you are still paying off debt, it may make sense to keep your life insurance until you are debt free.

Check your surrender values. The premiums you save by giving up old insurance policies are not the only benefit. If you’ve had your policy for a long time, you might have built up a considerable surrender value, which is a partial refund of your premiums. This can potentially free up some cash that can be invested.

Using insurance for estate planning. Many people aren’t aware of the many ways life insurance can be used for estate planning. You can set up insurance-based trusts that may save you taxes both now and later. Using insurance for trust planning is an important—though confusing—topic, but we can help answer your questions and offer suggestions to address your stated goals.

The cost and availability of Life Insurance depend on many factors such as age, health, and amount of insurance purchased. In addition to premiums, there are contract limitations, fees, exclusions, reductions of benefits, and charges associated with policy. And if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Any guarantees are contingent upon the claims-paying ability of the issuing company.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This material was prepared by Deluxe.
Securities offered through LPL Financial, member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. South State Bank and South State Investment Services are not registered broker/dealers and are not affiliated with LPL Financial. Advisory Services offered through LPL Financial, a Registered Investment Advisor.
*Please consult your tax-advisor for tax related issues.
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