Purchasing a life insurance policy is one of the most important financial decisions you can make while in the middle of your professional career. Life insurance at this time is so critical because people typically have a young family to look after or more substantial debts to take cover. But what about the need for life insurance after retirement?
After your years of hard work in your career, it can seem reasonable to stop paying for life insurance coverage. To many, life insurance is a financial tool required only during your working years. But how true can this be? There are several sound reasons why retired people can benefit from hanging on to their policy for a while longer. Don't fall into the trap of thinking there is no need for insurance during retirement. You've got plenty to protect still.
Unfortunately, today many Americans are retiring with some form of debt that will need to be covered. From credit cards to car payments, the financial obligations retired Americans carry come in many forms. Having a life insurance plan into retirement can help pay off any debts that would otherwise fall to your family members to cover after you pass away.
Without an insurance policy, your family may have to liquidate any assets you may have owned to cover your debts. If you are carrying any debt into your retirement years, it is worth have a life insurance plan on your side to protect those who matter most in the event of your death.
Funeral costs and other final expenses are fees that everyone will have to consider during retirement. According to the NFDA (National Funeral Directors Association), the average cost of a funeral in American can be almost as high as $10,000.
Your plan's benefit is an essential source of funds that prevent using your savings to cover any final fees. People argue that you can use your savings to cover these costs, but will your savings be able to do the job?
Savings aren't always designated as your final expense funds; often people use them for several different ventures like vacations and retirement hobbies. During this time in life, it makes sense to have a life insurance plan solely used to cover funeral costs and legal fees. In the end, bogging down your savings by including inevitable costs can negatively impact your overall enjoyment of retirement.
Our Final Expense Plan is life insurance designed to cover your final costs or leave behind a legacy. Consider a final expense plan to provide peace of mind about your final needs as you head into retirement.
Life insurance provides financial protection to the people we care most about after we pass away. When you retire, you need to ask yourself if any members of your family will face financial hardships when you pass away. You may have children that will still be living with you, or they may have moved out but have had children of their own. In either situation, you will have loved ones that may require some financial assistance.
Finally, you might want to ensure that your spouse will be able to maintain their quality of life if you were to die unexpectedly. Try to put yourself in his or her shoes and think of yourself as the surviving partner. If you feel as though you will need extra income, consider keeping your life insurance policy in force into your retirement years.
A life insurance benefit doesn't solely have to provide essential financial support. Your family may not need the money your plan will provide, but you may still want them to have it. Leaving a legacy behind for your family can mean using your benefit to cover loved ones' future milestones. Life insurance benefits can protect your grandchildren's college education, pay for their weddings, or cover the down payment on their first home.
Business Insider has a helpful article about the cost of a downpayment for a home today. This article shows how typical down payments can range, on average, anywhere from $10,000 to $30,000 or higher in today's market. Your life insurance plan can help take care of this if you pass away unexpectedly. What better way to leave your loved ones with a parting memory than to help your children or grandchildren with their home purchase?
Another option available to you is to leave your benefit to the charity of your choosing. By donating your plan's benefit to a charity, you will be making much more of a contribution than you could through a phone solicitation or fundraiser.
Certain gifts you leave behind after you pass away aren't easy to split among your family members. Since assets like summer homes or family businesses are difficult to divide equally, your loved ones may have to sell them off instead of keeping them.
With your life policy's benefit, you can effectively leave the property or the family business to one of your children or grandchildren and leave the cash from the policy to the other. Upon your death, the children interested in a family property will be able to obtain it, while the other child will receive an equivalent cash inheritance.
Keeping your life insurance into retirement is entirely up to you. Still, it would be best if you took careful consideration before you decide on canceling your policy. If you still have debts or want to leave something behind for your family as you retire, having life insurance will be a great asset to you.
Please don't hesitate to contact us here at Insurance Supermarket Inc. if you have any questions about your post-retirement life insurance options. We would be more than happy to help you discover your ideal plan.