Life Insurance For Retirement Savings

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What is Life Insurance for Retirement Savings?

Life Insurance for Retirement Savings can help ease your worry as ensure that you will have financial security when you retire. Any permanent life insurance policy that comes with a cash value, such as whole life insurance, can help fund your retirement.

A cash value within a life insurance policy is the balance that remains after a portion of the premium payment is applied to insurance costs. A certain percentage of your cash value life insurance policy’s premium payment goes into an investment-like savings component with additional interest rates depending on your policy. Your individual value and the cash value account determines the exact value that goes into savings and how much you will receive later.

There are two ways you can access your policy’s cash value either by taking out a loan against it or withdrawing from your funds. The money you get from your cash value can also be used to provide tax-free income.

Other Interesting Life Insurance Types

Below are some of the most popular life insurance plans you can purchase to fully protect you and your loved ones.

Endowment Plan

An endowment plan is a life insurance policy that provides you with a combination of life insurance coverages and a savings plan. It helps you in saving regularly over a specific period of time, and when the policy matures, you can get receive a lump sum payout.

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Family Life Insurance

Family life insurance protects your family not only from the high costs of an unexpected death, but also from the costs of a funeral, an outstanding mortgage, unpaid student loan debt, missed income, and future college savings.

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Why Choose the Thaiger?

For many people, choosing the right life insurance policy can be a hassle – you need to wade through different insurance policies, debate which insurance company to choose, and make many other decisions to ensure that you purchase the best life insurance for your specific needs.

Today, you no longer need to do any of those things because we can take care of all of your insurance needs, allowing you to get on with your day to day life. The Thaiger is here to simplify the whole process of purchasing life insurance and make the process as quick and as hassle-free as possible.

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How to Build your Retirement Plan

Review Your Retirement Plan Regularly
You should review your retirement plan at least once a year. The most important factor to consider is the required post-retirement income; after taking inflation into account, you’ll need to save more than you thought (inflation is a general increase in price and a fall in purchasing value or decrease in purchasing power).

What to Do If the Review Outcome Is Not As Expected
If the results of the report are inadequate to cover retirement costs, you still have time to prepare. Many people who delayed retirement must have their retirement age extended in order to receive the extra retirement insurance funds they need. The providers would advise you to increase your deposit while reducing your expenses to save more money per year.

Post-Retirement Asset Management
Keep in mind that inflation is constant and as a result, your post-retirement investment strategy should tend to maintain and not outperform your purchasing power.

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The Benefits of Life Insurance for Retirement Savings

The following are some of the benefits of using life insurance for retirement savings.

Protection From Financial Uncertainty

One of the benefits of having life insurance for retirement savings is to protect yourself and your family from any financial uncertainty once you retire and/or in the event of your death.

Premiums May Be Tax-Deductible

If your employer offers a retirement plan with a life insurance option, then you can have tax-deductible contributions, which may be used to purchase the insurance policy. Thus, you can use your life insurance to save for retirement.

No Limit

There is typically no limit to how much money you can pay into the cash value policy for your retirement savings.

Saving for retirement in Thailand

It’s worth knowing what choices are available to help develop your retirement savings if you’re in the middle of a career but planning to stay in Thailand for a longer period of time. There are a variety of tax-efficient and well-supported local choices available for you to consider.

Local Thai Investment Option

To promote investment in the Thai stock exchange and to raise Thai retirement savings in general, the Ministry of Finance offers substantial incentives for those who invest in specially designated funds such as:

SSFs or super savings funds invest in SEC-approved investments such as equities, stocks, and alternative assets with a minimum 10-year holding period, and RMFs or retirement mutual funds invest in local and foreign shares and can’t be touched until you’re 55.

International Private and State Pension Option

In addition to making the most of your Thai retirement savings, you can also make the most of your pensions and retirement savings in your home country. Depending on where you are from, there are a variety of options for continuing to contribute to private and public pension schemes after you retire in Thailand.

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