Today's Date: December 5, 2022
INT'L DAY OF PEOPLE WITH DISABILITIES: Salesian Missions highlights social and educational programs that promote inclusion   •   Pictor announces funding round after successful launch in New Zealand and USA of SARS-CoV-2 Antibody Test   •   Swisslog Healthcare Showcases Medication Management Solutions at ASHP Midyear Clinical Meeting & Exhibition   •   Sensorion Announces Its Attendance at the 41st Annual J.P. Morgan Healthcare Meeting in San Francisco   •   Canada's Indo-Pacific Strategy to support growth and prosperity for the agriculture and agri-food sector   •   Louisiana local Ronnie Schwartz clinches St. Jude Hero Among Us Award   •   Novo Nordisk & ATLATL announce winners in their joint program EntreStar   •   The 2022 ITOE Senior Care & Rehabilitation Expo Kicks Off   •   Veterans Who Have Experienced Military Sexual Trauma Have Issued a Public Statement Regarding Public Discourse Surrounding the I   •   Sims Limited Pledges to Achieve Gender Balance in Executive Leadership by 2030   •   TherapeuticsMD Announces Definitive Agreements to License its Products to Mayne Pharma   •   EHEALTH INVESTIGATION CONTINUED by Former Louisiana Attorney General: Kahn Swick & Foti, LLC Continues to Investigate the Of   •   INVESTOR DEADLINE: Olaplex Holdings, Inc. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit &ndash   •   In Uganda, Blind Football brings the Visually-Impaired out on the Field   •   Statement by the Prime Minister on the International Day of Persons with Disabilities   •   Goldfish Swim School's Pediatrician Offers Winter Water Safety Tips, Suggests Giving the Gift of Activity this Holiday Season wi   •   Announcement for the purposes of Rule 2.8 of the Irish Takeover Panel Act, 1997, Takeover Rules, 2022 (the “Irish Takeover   •   Dr. Michael A. Coe, M.Ed, D.Div.'s newly released "He Looks Like Me: An evidence based guide for teachers mentoring African Amer   •   Financial Columnist Terry Savage Offers Money-Saving Tips to Older Adults   •   St. Jude Memphis Marathon Weekend sees 20,000 participants, $37 million economic impact for Memphis
Bookmark and Share

Multicultural Retirees' Income at Risk

 

MassMutual: Whole life insurance cash values can be overlooked source of retirement income

SPRINGFIELD, Mass.,  -- Nearly 45 percent of U.S. households are "at risk" of not having enough to maintain their living standards in retirement, according to the National Retirement Risk Index, a special project of the Center for Retirement Research at Boston College.

Many multicultural populations are particularly at risk: a new study by the Hispanic Institute For Americans For A Secure Retirement found that only 41 percent of Hispanic workers say they have saved money for retirement. African-Americans, too, face significant risk of outliving their incomes in retirement. In 2009, an Ariel and Schwab survey of middle and upper income Black and White retirees shows that retired Blacks have median savings of just $73,000 compared to $210,000 for Whites.

But some Hispanic and African-American retirees have discovered a source of supplemental income that can help tide them over during rough patches: their whole life insurance policies.

Many retirees and pre-retirees are counting, if necessary, on tapping the cash value of their whole life insurance policies – without tax or penalty – to see them through in a pinch. Their policies' cash values, which are guaranteed to grow, also can offer protection against the erosion of income caused by rising inflation, declining interest rates, and higher income tax rates.

Gabriel Angulo, a business owner and father of three in Miami, Fla., bought a whole life insurance policy from Massachusetts Mutual Life Insurance Company (MassMutual) five years ago after the birth of his youngest son, when a neighbor had a fatal heart attack, leaving two children behind. After research, he purchased whole life insurance because of the permanent death benefit for his family.  

"In addition to the death benefit that protects my family, the cash value building up in my whole life policy is a great help in planning for retirement or any other need for cash that may come up," Angulo said. "It's tax free, and I can use it when necessary, without penalty."

Financial professionals say whole life insurance is particularly well-suited for supplemental retirement planning, as it creates flexibility that enables policyholders to address their needs and circumstances as they change over time.

"A whole life policy is attractive because, as long as you make premium payments, the cash value will always go up," explained Luis Hernandez, general agent of MassMutual's Miami, Fla., office, LINQ Financial Group. "The flexibility of whole life insurance is especially appreciated when the market experiences a downturn," he continued. "Instead of selling off your investments at a loss, policyholders can access tax-friendly cash, which is especially appreciated by high-net-worth individuals."

Angulo credits Hernandez' brother, Carlos, who is a financial services representative at LINQ Financial, for his clear and detailed explanation of whole life insurance and its accompanying cash value as a determining factor in his purchase.

"Guarantees are one of the many great aspects of whole life insurance," said Tara Reynolds, corporate vice president, U.S. Insurance Group, MassMutual. "The death benefit is guaranteed; the premiums are guaranteed, and growth of the cash value is guaranteed. It's a piece of your financial plan that you don't have to worry about."    

While a whole life policy's cash value can be an effective way to supplement retirement income, it is not recommended to access the cash in the policy for non-emergency needs or desires, such as consumable goods or vacations. It also is not advisable to tap the policy's cash value when the policyholder's top priority is preserving the death benefit, such as when wealth transfer or estate taxes are more important to the overall strategic financial plan.

To learn more about how whole life insurance can help with retirement planning, visit massmutual.com/life.

About MassMutual

Founded in 1851, MassMutual is a leading mutual life insurance company that is run for the benefit of its members and participating policyholders. The company has a long history of financial strength and strong performance, and although dividends are not guaranteed, MassMutual has paid dividends to eligible participating policyholders every year since the 1860s. With whole life insurance as its foundation, MassMutual provides products to help meet the financial needs of clients, such as life insurancedisability income insurancelong term care insuranceretirement/401(k) plan services, andannuities. In addition, the company's strong and growing network of financial professionals helps clients make good financial decisions for the long-term.

MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual is headquartered in Springfield, Massachusetts and its major affiliates include: Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; The First Mercantile Trust Company; MassMutual International LLC; MML Investors Services, Inc., memberFINRA and SIPC; OppenheimerFunds, Inc.; and The MassMutual Trust Company, FSB.

CONTACT:

 

Karen Lavariere-Sanchez

 

klavarieresanchez@massmutual.com

 

413.744.7660



Back to top
| Back to home page
Video

White House Live Stream
LIVE VIDEO EVERY SATURDAY
alsharpton Rev. Al Sharpton
9 to 11 am EST
jjackson Rev. Jesse Jackson
10 to noon CST


Video

LIVE BROADCASTS
Sounds Make the News ®
WAOK-Urban
Atlanta - WAOK-Urban
KPFA-Progressive
Berkley / San Francisco - KPFA-Progressive
WVON-Urban
Chicago - WVON-Urban
KJLH - Urban
Los Angeles - KJLH - Urban
WKDM-Mandarin Chinese
New York - WKDM-Mandarin Chinese
WADO-Spanish
New York - WADO-Spanish
WBAI - Progressive
New York - WBAI - Progressive
WOL-Urban
Washington - WOL-Urban

Listen to United Natiosns News