As you look ahead to retirement, consider the role your life insurance will play. The cash value of a permanent life insurance policy could be used to help supplement your retirement income.

In the event of your death, the death benefit could be used to provide regular income for your spouse so that your other hard-earned assets will not be used to meet expenses.

Even if your employer provides group life insurance, consider purchasing an individual policy. Group plan death benefits tend to decrease significantly or end when you retire—the time when buying a new insurance policy will be more expensive because of your age and possibly, your health.

Keep in mind retirement does not necessarily put an end to your need for life insurance, although it does mean that you should re-evaluate your insurance coverage. If you are near retirement and still have dependents that need protection from financial hardship if you die, you should have life insurance. If you no longer have dependents, or if you have amassed adequate resources to care for your survivors, the amount of life insurance protection you need may lessen.

What, then, do you do with your life insurance policy? If you own a whole life insurance policy, for example, you have several options:

• Keep the policy in force under a provision called "extended term." Under this option, you pay no more premiums (thereby releasing those dollars for other investments) and you continue to remain insured for the full policy amount. The policy's accumulated cash value, in effect, pays the premiums for an amount of time spelled out in your policy.

• Keep the policy in force indefinitely by converting it to a paid-up policy. You pay no more premiums, but the amount of insurance is reduced. The accumulated cash value remains intact, and you retain the option of borrowing against it.

• Use the policy's accumulated cash value to purchase an annuity, which can provide a guaranteed lifetime income. Or, you might use the cash value for another financial services product. However, be aware that income taxes likely will be due and distributions may effect the death benefit. Taxes will be based on the sum of the cash value plus dividends you receive that exceed the premiums you have paid while the policy was in force. If you keep the policy in force as either extended term or paid-up insurance until death, no income taxes will be payable.

Policy loans and withdrawals will reduce the cash value and the death benefit, and may have tax consequences.

Regardless of the type of life insurance policy you have, it is a good idea to review your coverage and options with your Northwestern Mutual Financial Network Representative as you approach retirement age, to be sure that your policy still is meeting your needs.