Retirement life insurance is a long-term policy designed to provide a financial safety net during retirement years. Consider this: Mary, 55, purchases a retirement life insurance policy with a $1 million payout. Should she pass away prematurely, her beneficiaries will receive the payout, securing their financial future.
Retirement life insurance offers numerous benefits, including providing a guaranteed death benefit, supplementing retirement savings, and covering end-of-life expenses. Notably, the Revenue Act of 1942 exempted retirement life insurance policies from federal income tax, making it a tax-advantaged tool for financial planning.