Life insurance does not replace traditional retirement income and/or college funding vehicles. However, permanent life insurance can accumulate cash value, cover funeral expenses, provide liquidity for mortgage payments, etc. Term-life insurance policies cannot. When applied strategically, policy loans and income-tax-free withdrawals can complement a college funding plan or retirement income strategy. A tax professional should be consulted as tax laws are subject to change.
The Allianz survey comprised 803 people between the ages of 35 and 60 with household incomes of at least $100,000.