Bridging the Retirement Income Gap with Life Insurance

Planning for retirement is more essential than ever. Ensuring you have enough financial income to bridge the gap from Social Security income can require much forethought and planning. During this end-of-year evaluation of what all is important to us and our families, let’s review the realities of Social Security in today’s world.


Did you know the average Social Security benefit is only about 40% of a worker’s pre-retirement income (according to Would that 40% be enough to ensure the same standard of life once you are in retirement stage? Would it cover the list of retirement expenses, including the increase in prescription drugs, health care, homeowners’ insurance, real estate taxes and the simple cost of goods and serviced increasing year-over-year? An average monthly Social Security payment per month is $1520. According to Social Security Administration, retirees will have an average monthly expense of $3965, which means approximately 72% of workers assume they will have to work for income in retirement.


How can we ensure that gap in income is covered? Supplement Social Security income with Life Insurance. Your clients can count on affordable life insurance options that help bridge the income gap. They can access flexible, tax-advantaged money from their policy while living.


People can look forward to a comfortable retirement. It is within their grasps. Protecting loved ones with valuable death benefits is the primary reason to choose life insurance. However, they can get more from today’s products that also offer attractive benefits while still living. These policies have tax advantages, making them an important part of a retirement portfolio.


Two examples:

  1. Supplement and Protect – Life insurance with living benefits can be applied wot health care costs which haven’t been planned or budgeted for. It’s ideal for unexpected expenses like critical or long-term illnesses.
  2. Guaranteed Benefits – It’s not “use it or lose it.” Your benefits are paid no matter what, and it’s up to the policy holder to decide how and when to use the money. If benefits are not used during your lifetime, they will be passed on to help secure the financial future of your loved ones.


Let’s get into the discussion as soon as possible. While families are gathered together, be sure to let your clients know of all the possibilities in life insurance.


Sean McBride