By setting aside a small amount of your paycheck each pay period, you are less likely to feel the pinch. Many companies will even match a percentage of your savings. Check with your employer to see which savings plans are available. Insurance also plays a key role in your overall financial plan and should not be viewed as an isolated purchase. Life insurance enables you to provide a pre-determined amount of money to a specified beneficiary when you die.
Annuities provide retirement benefits.
Annuities will accumulate cash value that you can use at retirement or that can be withdrawn as cash before retirement. Current interest rates may determine fixed-annuity cash values. A variable annuity cash value will vary based on performance of a portfolio of securities. Both life insurance and annuities provide valuable tax benefits because your investment may grow on a tax-deferred basis. There are several categories of life insurance.