AGLAchoice® Guarantee Plus is life insurance that can provide protection for a customer’s entire lifetime. Yet AGLAchoice® Guarantee Plus also offers customers exciting options to help supplement their retirement income with the newly-developed CustomerChoiceSM Lifestyle Income Rider.
The CustomerChoiceSM Lifestyle Income Rider was designed to help Americans preserve their standard of living, as it provides the option to receive a living benefit to help supplement retirement income. If customers need to access a portion of their life insurance at an age late in life, they may do so. However, if they don’t need to withdraw any money while they are living, then their entire life insurance benefit will pass to their policy beneficiaries!
“Together we are changing the way Americans think about, purchase and use life insurance,” says Jim Mallon, President and CEO, Life and A & H, American General Life Insurance Company. “People want safe and secure life insurance protection, but they also want the potential to receive income if they need it. That’s the great thing about AGLAchoice® Guarantee Plus and the CustomerChoiceSM Lifestyle Income Rider. Customers can gain financial security against both dying too soon and living too long. It truly is life insurance you don’t have to die to use.”
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Financial planning for retirement requires in-depth analysis of one’s personal expenses and spending behaviors. Overly relying on what the typical consumer spends in retirement may result in serious financial issues down the road, a new study asserts.
Researchers from the Society of Actuaries recently performed an analysis of the types of spending retirees often are presented with post-career, both those that are expected and unanticipated. They found that the decisions individuals make in preparation for this stage of life can have a dramatic impact on how financially well off they’ll be in the days when they’re no longer working.
For example, researchers say that making retirement decisions based on averages increases the risk of running out of money. In addition, households with moderate to high income earnings can retire successfully 20 percent short of their savings goals, provided they cut their discretionary budgets by 15 percent at least.
Financial experts say that in order to retire comfortably, consumers should aim to save enough so that they’re living off between 70 and 85 percent of what they made when working.
Anna Rappaport, the report’s co-author, indicated that retirees often approach retirement with too casual of an attitude. If they don’t take it more seriously and make retirement planning a priority, they risk a significant drop in their standard of living.
She added that retirees should also take precautions for the unexpected, as health emergencies and investment plans can often materialize with little warning.
One way in which retirees can further mitigate the potential for falling short of their savings goals is by opting to stay with a job for a longer period of time. According to a recent report from the nonpartisan Congressional Budget Office, more people are already doing this, due primarily to the government raising the age of eligibility for Social Security benefits.
While those approaching retirement may have once predicted that their post-career years would enable them to do everything they always wanted, a new survey suggests that many may now be realizing that this scenario likely won’t materialize after all.
In a new survey conducted by professional development and consulting organization LIMRA, less than half - 48 percent - of pre-retirees say that they will end up living the lifestyle of their dreams in retirement. Respondents for the survey were all between 55 and 70 years old, each of whom had yet to leave their jobs for good.
Matthew Drinkwater, associate managing director of retirement research at LIMRA, noted that the people who are most likely to feel this way are those who didn’t make retirement planning a priority when they were middle-age or younger. He added that those who are most likely to be able to live the retirement they always imagined are individuals who chart out an estimate of what their expenses will likely be in retirement, determining what their assets are and taking stock of all the things they want to do post-career that are financially feasible.
Drinkwater also advised pre-retirees to plan for retirement because people are living longer today than they once did. In fact, nearly one-third of a person’s life may be spent in retirement.
According to recent health statistics, people around the world have a higher life expectancy, averaging about five more years since 1990, according to statistics recently published in the health journal Lancet.
Consumers can supplement their retirement income through life insurance. Survey data shows that one of many Americans’ top financial concerns is having enough money to live comfortably in retirement.
A new report indicates that a considerable number of Americans who are nearing retirement don’t think they’re ready for it from a financial standpoint.
According to consulting and professional development firm LIMRA, approximately one in every four retirees say they feel as prepared as possible for the expenses that they may have in retirement. This is down from 30 percent when compared to a survey that was performed in 2010.
Matthew Drinkwater, associate managing director for retirement research at LIMRA, indicated that it may come as a surprise that many pre-retirees simply don’t have the financial means that they once did. In 2007, 45 percent of Americans between 55 and 70 years of age had at least $100,000 in assets. That dropped to 38 percent by 2010.
He added that all consumers - but pre-retirees, in particular - need to do all they can to save for retirement, as health circumstances may cause them to retire before they intended.
With the number of Americans with the financial wherewithal to handle their living expenses post-career dwindling, it seems apparent many of them need to re-think their lives once they retire. What are you doing to prepare for retirement?
In the course of financial planning, a considerable number of Americans are making life insurance a key component of that preparation.
According to a recent poll conducted by Harris Interactive, approximately one in every four Americans who are over the age of 18 have made obtaining a life insurance policy a crucial aspect to their retirement saving strategy.
Life insurance expert David Simbro indicated that in the past, most people looked to these policies primarily to provide for their families in the event of their passing. However, more people are seeing the benefits that can be had through life insurance from a standpoint of retirement.
The poll also looked at how age may have played a role in what motivated individuals to obtain a life insurance policy. For those older than 55, nearly one-third said that retirement planning was the top reason they purchased a plan. Meanwhile, for individuals under the age of 45, just 19 percent said the primary driver of their purchase had to do with retirement.
There are a variety of life insurance types. Before securing a plan, policyholders may want to discuss what to analyze the costs and benefits of a term-based policy versus one that’s whole, for instance.
When consumers look for a life insurance policy, they may feel bombarded with a large number of choices. However, it is important to keep in mind that finding how much coverage a consumer needs depends on what they plan to do with it.
There are many ways to use a life insurance policy, so those purchasing coverage may not all have the same needs. Anyone who has a sufficient amount of savings for their end of life expenses may not need as much coverage as some others if they have no family members to take care of at that point. However, end-of-life care expenses may also be a factor for many.
If a consumer knows exactly what they need to have covered with a policy, they may be better prepared to make a policy selection. Needs can include paying for funeral expenses, and mortgage payments or even ensuring dependents have money for the future. A thorough insurance needs assessment with an agent can be very helpful.
When a consumer determines the type of coverage that is needed, it is important then to determine the dollar amount required to meet identified needs. This can be accomplished by writing out some simple equations to determine how much the items may cost in the long run, and how they can best be paid for. Again, an insurance agent can help with this process.
A recent poll from Pew Research Center showed that a significant portion of American adults are not sure what their financial situation will look like in retirement.
Close to 40 percent of those polled noted they are not particularly confident they will retire with enough money, the report explained. This was significantly higher than the 25 percent recorded in 2009.
While baby boomers showed the highest level of concern about retiring with a sufficient amount of funds in the previous poll, those between 36 and 40 years old had the highest level of worry in the current poll, the report said. More than half of those surveyed in that age group noted they worry about not having enough money. Approximately one-third of adults between 60 and 64 years of age noted the same concerns.
It may be important for families to keep up on their general retirement savings. However, this is more important if their is a family member who is ill. A life insurance policy may make the savings process less stressful, as the family will have a safety net in the event of a family illness.
Though many people may be looking forward to retirement, a new study indicates that they’re not preparing for it like they may need to be.
According to a recent analysis performed by consulting and professional development firm LIMRA, approximately 66 percent of middle-income Americans - defined as those making between $40,000 and $99,000 per year - have devoted less than 5 percent of their annual earnings to retirement savings.
Not only are many Americans not saving enough, but few are saving in their later years. For example, LIMRA notes that as many as 26 percent of American workers 55 years of age and older report not putting anything at all toward financially preparing for retirement.
Matthew Drinkwater, associate managing director for LIMRA, said that saving is of utmost importance, as the average consumer will live at least 20 years into retirement.
While there are a variety of strategies, one is through life insurance. As the Financial Planning Association notes, a life insurance policy serves as an ideal way in which to replace lost income or supplement earnings.
A report from MIB Solutions showed that more Americans are interested in taking out life insurance policies, as the volume of applications rose during September.
The MIB Life Index showed that applications for individual life insurance policies rose 1.5 percent during the month when compared to September 2011. The increase was achieved with a shorter month in terms of business days, as well.
Additionally, data showed a jump of more than 2 percent for the youngest age group, while applications from middle-aged Americans experienced a 0.4 percent drop, according to the report. The oldest age group, meanwhile, increased requests 2.8 percent.
During the third quarter, there was a 0.8 percent decline compared to last year, the report explained. However, six of the previous nine months experienced improvements, which gives the index a 1.7 percent year-to-date increase.
Taking out a life insurance policy may protect a consumer’s family in case they are no longer there to take care of them financially.
A growing number of consumers have used online channels to learn more about the various life insurance types available, as the figure jumped significantly since 2006.
A study from LIMRA noted that more than 60 percent of life insurance customers looked at websites for insurance options or other annuities. This was significantly higher than the 38 percent recorded six years earlier. Additionally, the amount of consumers who spoke directly to insurance advisors approached 70 percent.
Mary Art, research director for LIMRA’s technology research department, explained that the figure was in line with the increasing level of consumers who regularly use the internet. She noted that speaking to someone directly is still the preferred method for consumers because these options are the most informative.