Increase your retirement savings.
It’s that simple. Experts recommend saving at least 10% of your income to fund your retirement, but what doesn’t get enough attention is the value this has toward your life insurance protection.
The concept is simple: The Best Defense Is A Good Offense. The more you put into your savings, the less insurance you need to buy. So that money is actually serving double duty, which is pretty great when you think about it.
401(k) and other retirement accounts are a super effective way to protect your family for two simple reasons:
- Creditors can’t touch it. Typically when a person dies, their estate will settle up their debts and pay out any remaining assets to the person’s heirs. The bonus with retirement accounts is that – just like life insurance policy – by law this money goes straight to the heirs no matter what debts were left behind.
- Your money grows faster. Tax benefits and employer match help these accounts grow a lot faster than regular savings and investment accounts, so your “self-insurance” grows faster.
Let’s say it again: The Best Defense Is A Good Offense. So if you want to take an action today to protect your family, increase the amount you are setting aside for your retirement. It really is that simple!
p.s. Bet you’ve never heard a life insurance agent talk like this before, right? We’re different – come see why.
p.p.s. The saying “The Best Defense Is A Good Offense” has an interesting and ancient history. Nerd out with these links: