Life insurance policies can be an important source of supplemental retirement income funds. The policy proceeds can obviously be an important source of funds for the surviving spouse. These funds can supplement any other source of retirement income available from corporate pensions, IRAs, other qualified plans, investments, and social security.

Life insurance can even provide supplemental retirement funds to the insured individual. This can be accomplished by utilizing the cash value of the life insurance prior to the insured�s death. Some policies, such as universal life policies, allow partial withdrawals of cash value amounts without terminating the policy itself. Under any life insurance policy having a cash value, the policyowner can always gain access to the funds by either taking out a policy loan or surrendering the policy for the entire cash surrender value. (Surrendering the policy, of course, terminates any death benefit protection.)