Or are they? It's common and required for all of us to have car insurance, health insurance, and homeowner's insurance. You can't drive a car or own a home without that type of coverage, and we pay these premiums without hesitation.
I won't kick the hornet's nest and start a conversation here about health insurance. And although life insurance is not required, many Americans choose to provide those monetary benefits to their loved ones to ensure that they are cared for after you're gone and knock, knock, knockin' on heaven's door. But there is one type of insurance that all of us need, but most never plan for, and that's Income Insurance™. Let me walk you through it.
To be clear, I'm not referring to disability income insurance. I am talking about the assurance that comes with insurance knowing you'll never outlive your moneyknowing that you'll have cash in the bank when you need it after retirement.
To survive, to pay the bills, and buy food, we need money, and we need it coming in on the regular. Whether we are working or retired, that monthly income stream has to be there. Are you one of the 10,000 baby boomers hitting retirement every single day? Are you about to be? Guaranteed income is essential and needed. So why aren't there agents out here selling Retirement Income Insurance™? Well, they are. They're called annuities. Annuities are retirement income insurance.
Lifetime Income Insurance™ is the peace of mind of knowing that a sufficient amount of money will hit your bank account every month as long as you are alive. Social security is an example of income insurance you already have. A pension is another example of retirement income insurance. In the annuity industry, we are talking about this lifetime income insurance when we are talking about lifetime income annuities. Why? Because just like social security and pensions, they pay regardless of how long you live.
With an aging population, Lifetime Income Insurance TM should be at the forefront of most people's retirement plans. As we all know, social security is the best inflation annuity on the planet. But, social security was never intended to be the primary source of income during retirement. Unfortunately, it is for too many Americans. Most people have to figure out a way to fill in that additional and needed income gap.
Less than 10% of private companies currently offer a pension, so most people have to create additional income streams when they retire.
Planning on contractual income starting at a future date is the pure definition of retirement income insurance.
Lifetime income annuities like Single Premium Immediate Annuities (SPIAs), Deferred Income Annuities (DIAs), Qualified Longevity Annuity Contracts (QLACs), and Income Riders all contractually guarantee a lifetime income stream regardless of how long you live. As long as you are breathing, the payments will hit your bank account. Now THAT is what I call income insurance.
That means that annuities are the only contractual transfer of risk solution for this type of insurance lifetime income insurance. No other financial product can provide this lifetime stream of income benefit. It's the benefit proposition that only annuities can offer and contractually guarantee.
So whatever you call it, Income Insurance™, Lifetime Income Insurance™, or Retirement Income Insurance™, you need it in addition to your social security. Want to talk about sure-ing up your retirement income plan?
Schedule a call with me, Stan The Annuity Man and let's talk about a customized annuity plan for your specific situation.