Retirement Protection
One of the most horrific fears of many Americans is the possibility of outliving their cash and financial holdings. But as we witness in real world practice, this common concern doesn’t typically lead to personal accountability or proactive measures early enough. Most working age Americans aren’t sufficiently progressing toward savings and wealth accumulation. We worry about having enough income and savings to live out our retirement in comfort, but we hardly take the steps necessary to achieve an adequate capital foundation for use later in life.
Social security is hardly the answer as program reservoirs continue to dwindle and benefits are hardly enough to meet average American lifestyles. Saving must take place vigorously before retirement, while a person is still a producer and an earner.
Annuities are a viable option to provide a steady income stream through retirement, but the costs, lack of liquidity and complicated taxation issues can be disconcerting to many clients.
401(k), IRA and similar plans are attractive and another step in the right direction. Those with access to employer-sponsored retirement savings programs are gaining more understanding and more trust in placing higher levels of income into retirement accounts, and with more employers matching or adding contributions, these accounts have become among the strongest wealth savings vehicles available to employed Americans.
However, we can’t completely count on market performance of retirement accounts and deferred annuities. More importantly, we can’t guarantee that regular payments will continue to sufficiently build those coveted retirement funds. What would your client do if he/she were to suffer an illness or injury that resulted in long-term disablement? What would eventually happen to your client’s income? Who would continue making contributions to your client’s retirement savings? If your client became disabled, eventually he/she would no longer be able to work nor receive any income. Their retirement plan contributions would cease, and they may find it impossible to afford their annuity plan. Any total debilitation would make your client struggle to financially survive today as well as into traditional retirement years.
The best solution to this catastrophe is to have income covered with ample amounts of group and/or individual disability insurances. Since most prospects depend on a steady earned income stream, it is wise that you pay attention to their disability insurance needs.
Disability income insurance is one of the greatest retirement planning tools. Without the protection of a comprehensive disability insurance package, your client stands to lose the ability to effectively accumulate wealth and savings for use in the later years of life. Over the last several decades, life expectancy has increased in the United States creating a greater need for proper savings safeguards like disability insurance.
Petersen International Underwriters can assist you in protecting the wealth of your clientele and help you better plan for their futures.