Life insurance is a valuable safeguard for a beneficiary’s financial position and can give you, as the policyowner, peace of mind. Certain types can help boost your financial strength as you head into your retirement years. If you have questions about which type to buy, how much coverage you need, and how life insurance can play a key role in your retirement income strategy, speak to your financial professional about your options first. In addition, the following four steps can help you determine the best option for your needs:

1.   Determine your goal.

If financial protection for your family, property, or business in the event of your premature death is your primary goal, term life insurance may be a good option. It protects for a certain period of time—such as 10, 20, or 30 years—at affordable premium costs.

If you are looking for a longer period of protection and additional benefits you can access while you are still living, consider cash value policies. These policies offer a tax-free¹ death benefit for your beneficiaries (i.e. loved ones) plus tax-deferred growth potential and tax-free supplemental income² through withdrawals and policy loans from the available accumulated cash value. Because the premiums for cash value life insurance are generally higher than term life insurance, the typical purchaser is someone who is willing to pay more for the tax advantages and additional features of cash value policies for policyowners and/or involve estate-planning strategies that may reduce potential estate tax burdens on survivors.

Some term life insurance policies have an option to convert to a cash value policy before the term is up, saving you the hassle of having to go through the underwriting process again. If that’s something you’re interested in, make sure to inquire about that option with your financial professional.

2.   Evaluate your coverage need.

While you may have heard of such rules of thumb as a certain multiple of your current income, your need will vary based on your unique financial condition. Explore our easy-to-use online calculators to help you determine how much coverage you may need.

3.   Learn how your health may impact your policy options.

You may wonder how much health information you’ll have to divulge—or whether you’ll have to make a trip to the doctor—to purchase life insurance. The process for evaluating a customer’s life insurance request may simply rely on existing medical records and an online form, while other methods may require treadmill tests, blood draws, and months of processing.

Many carriers offer simplified underwriting programs for a less invasive and contactless process.

4.   Consider company credentials and reputation.

You want your provider to be in business for the long term so it can honor your policy when the time comes. Pacific Life was established nearly 160 years ago. It received the top spot on the Forbes Advisor 2020 list of best insurance companies³. Pacific Life scored highest in the rankings, thanks to a substantial portion of its cash value life insurance products scoring 5 stars from Veralytic, and 85% of its products scoring 4 stars or better³. In 2021, the company’s life insurance division also received an Insurance Service Award by DALBAR, the third year it was recognized for superior customer service⁴. The company also receives top ratings from independent ratings agencies, landing the company in the top 7 percent of life insurance companies with its Comdex Score of 93%⁵.