How to Use Life Insurance As Your Retirement benefits

Mika

VIP Contributor
If you are a freelancer or if you are working in a small firm, it is almost certain that you will not have any retirement benefits. In order to get retirement benefits, you either need to work for government agencies or big companies. Therefore, for a lot of people retirement benefits is not an option. Here lies the importance of buying a life insurance policy that you can ultimately use as retirement benefits.

Now, you might ask, how to use life insurance as your retirement benefits. I will exemplify this with my case.

I have bought a life insurance policy with a term of 20 years. I am a freelancer, therefore, I do not have any retirement benefits. However, I have life insurance and when the policy matures, I will have the insured amount along with the bonus. I can use this money as retirement benefits.
 

Mataracy

VIP Contributor
Life insurance is very good . Apart from the benefit that one will benefit from the premium one use to pay. Life insurance will also give one a surety that should in case unwanted occurred one will be able to get benefit to take care ones life. Since life its self is a risk one should know that its very important to insured ones life.
 
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peace life

Member
Insurance is defined as a social system to reduce the risk to which an individual is exposed by collecting similar risks and distributing the financial burdens resulting from their realization on all participants. Securing convoys in the winter and summer trips for the Arabs .The insurance system is basically based on the principles of cooperation, interdependence and solidarity between the individuals participating in the system, which call for not leaving the unfortunate individual for whom the danger is achieved to suffer alone under the burden of loss, but everyone contributes to bear it and accordingly the insurance system achieves a great benefit that is not limited to the participants But it extends to the whole community. Life insurance is concerned with covering those types of risks that befall the same person, such as death, permanent total disability and retirement, whose achievement results in the loss of income resulting from work in a total and permanent manner. Only for income. Life insurance is an important factor in fighting poverty that results from the material loss that a person incurs due to reaching retirement age, death, or complete or temporary disability as a result of illness or an accident. Hence the social importance of insurance arises. Life insurance also works to spread and facilitate education, as we find contracts whose purpose is to give children sufficient security to support themselves if their family dies while they are of school age, and insurance removes anxiety from souls, as it ensures security for the insured or beneficiaries of Insurance gives reassurance to himself. As for the economic aspect, life insurance works on: 1) increasing production and its efficiency, as it sends reassurance to the same worker or employee, thus increasing his ability to produce, as the feeling of anxiety would weaken the individual’s production capacity and affect the national economy As for the feeling of reassurance, it makes the individual to do his work with peace of mind and thus increase the efficiency in production. 2) Preserving the exploited wealth, for example, guaranteeing the capital to its family in the event of the death of one of the joint partners and withdrawing his share of the capital through his heirs. 3) The formation of huge capitals, and this is the great importance of life insurance for production in particular and for the national economy in general. Thus, it is possible to benefit from these huge funds accumulated from the amounts of small premiums for many purposes, including contributing to the establishment of industrial, agricultural, commercial or other companies. Directly or indirectly, until the extent of its spread and breadth in any of the countries became a criterion for its progress. Because of the importance of insurance in these areas, countries imposed their control over insurance agencies and directed the investment of those huge funds and allocated a large part of them to pay the needs of public interests. And as protecting the trustees from the abuse or deceit of companies, and protecting these companies from the fraud of the trustees and from unfair competition among them.insurance
 
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Chibson

VIP Contributor
I think i get the concept you are trying to put up. as a freelancer who just bought an insurance, it will go a very long way for you when you finally retire in your job because that will serve as a benefit to you. Those who get a lot of benefit works for the government.
 
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Mika

Mika

VIP Contributor
People who do not work for large corporations or the government do not have any retiremen benefits because small businesses and companies cannot afford to give their employees retirement benefits. That's where a term life insurance policy comes in handy. In my country, some insurance companies are even selling pension plans.
 
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Mandy96

Valued Contributor
I think this analysis makes sense to me. This helps the freelancer worker of a self employed worker who does not have any hope of retirement benefit. But I am sure this will work better if individual bought a short term life insurance because that is the best way to get your insurance compensation while still alive
 
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Jamoflondon

Verified member
I think this kind of opportunity would work more better if you are a self employed because as a self employed, you can’t expect any retirement payment after you stopped working. But as a salary earner or a wage earner, this kind of insurance opportunity will serve as a plus because they will still get retirement payment after they retire
 
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Jasmine

Valued Contributor
THis is a good idea. I have heard that some companies are even pension plan policies, these companies provide regular payment for certain number of years, or until lifetime, upon maturity. For example, you pay premiums for 20 years and after 20 years, you receive regular payment for 20 years,
 
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Chibson

VIP Contributor
I think this is a very good idea for people that work in private companies because most of them do not have reasonable retirement benefits for their workers. This is actually the case in my country. So using life insurance are something you will depending when you retire is very advisable.
 
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