Question

The most common use of life insurance is:

-replace loss of earning power created by a person's death
-pay for funeral expenses
-provide for college education
-provide for retirement income

Answer 1

Life insurance can be used to provide retirement income through the cash value component of some policies. Withdrawals or loans can be made against the cash value to supplement retirement income.

Step-by-step explanation:

Life insurance can also be used to provide retirement income. Some life insurance policies have a feature called cash value, which accumulates over time as you pay premiums. This cash value can be withdrawn or borrowed against during retirement to supplement your income.

For example, if you have a whole life insurance policy with a cash value component, you can make withdrawals from the cash value during your retirement years. These withdrawals can provide you with a source of income.

Additionally, you may also have the option to take out a loan against the cash value of your policy. This loan would need to be paid back with interest, but it can provide you with funds to support your retirement lifestyle.