Tapping into cash values of whole life insurance policies can help soon-to-be retirees’ weather future recessions, according to a MassMutual study.

The study found those who draw on the cash values of their whole life insurance policies and avoid the sale of equities from their retirement accounts in a depressed market could end up with more cash and a larger net legacy for their families, according to MassMutual’s analysis.

"With this strategy, retirees don’t have to settle for liquidating assets in a down market or cutting back on their lifestyle choices," said Melissa Millan, senior vice president of MassMutual. "A retirement income strategy incorporating whole life insurance and an equity-based portfolio can tame a bear market by creating the flexibility needed to respond to changing economic conditions."

Whole life insurance provides an income tax-free death benefit that can protect a policyholder’s income during working years, and ultimately assure a legacy to his or her family. A whole life insurance policy also provides guaranteed policy cash values and the potential for additional cash value funded with policy dividends.