The Basics of Saving for Retirement with Life Insurance

saving retirement life insurance

When we think about life insurance, we don’t immediately think how it can help save for retirement. In reality, however, life insurance can really contribute to a retirement plan. This is especially important for UAE residents, the majority of which are expats and have to return to their home countries for retirement. Obviously, shrewd saving and sound investments are huge contributors to retirement funds, but the right life insurance policy is also an essential part to any retirement plan.

Saving for Retirement with Life Insurance – Investing a Portion of Premiums.

One way that policies can pay financial dividends later on is by investing a portion of the premiums. For example, with combo-policies, the most in-demand policy, a portion of your premium is invested which either adds to the value of the policy or increases the value of the payout at the end of the term. Having a policy that combines investment and insurance is one of the most popular types of product on the market. And there’s good reason for this as these types of policy help you to both save for the future and invest in protecting the financial wellbeing of your loved ones.

Taking Out A Policy While You’re Young.

Not only does a life insurance policy protect your earning potential, but taking out insurance while you are young and relatively healthy also means far lower premiums and this translates into savings later in life. By consulting with an expert broker, you can get the right policy before your premiums start to rise with age and health concerns. An expert broker can help you to decide which policy is most appropriate for your specific financial goal and also make sure that your policy will be well-maintained over the course of its lifespan.

Calculating Your Savings.

For those looking to save for retirement, some of these savings can come from an insurance policy. For example, for a thirty-year-old looking to retire at 65 with Dh2 million, they should aim to save Dh5000 per month, some of which can be saved in an insurance policy as part of a bigger financial plan. ‘$150 or Dh550 per month should be enough if your policy is well maintained by a qualified advisor’ advises Ian Featherstone, CEO of IAE Insure. And, while an insurance policy will not save as much as a pension plan or an investment portfolio, saving small amounts regularly can add up and has far more security than investments or pensions.

Summing Up.

It’s important to remember that while a life insurance policy is not a pension plan, it can certainly be used as a tool for retirement saving. And, in any sound financial plan, life insurance should be a big factor. By using a broker, buying young and maintaining your policy with a qualified advisor, life insurance can be an invaluable tool in protecting both yours and your family’s wealth and quality of living – both now and in the future.

Contact Us.

If you’re concerned about whether you have enough cover or want to discuss what policy is right for you, contact IAE Insure today at or call +971 4 396 1878 for a FREE no obligation quote. Visit us at

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