Planning For Retirement
Life insurance is often thought of as a necessary measure to help protect your spouse and children from financial hardship in the event of your untimely death. However, once your children have moved out of the house and you begin preparing for retirement, is life insurance still a necessity?
Many individuals heading towards retirement wonder whether life insurance is still a worthwhile investment and some are even convinced to drop their policy entirely. While it is advisable to re-evaluate your life insurance policy before any major life change, completely dropping might be a little hasty.
Often, the assumption is that once you hit retirement, life insurance is no longer necessary. Is it? While some may believe that a well-planned and orchestrated retirement is sufficient coverage, this is not always the case. If you’re getting ready to retire or plan to retire soon, here are a few things to keep in mind before making any major changes to your policy.
Questions to Ask Yourself
If you find yourself debating the value of life insurance during retirement, begin by reviewing the following questions and scenarios.
Will I be earning extra income in my retirement?
It is not uncommon to work during your retirement years. Many retirees find themselves pursuing passion projects, turning hobbies into revenue generators, or working for extra income and to pass time. If you’re earning income during this period, it can be a wise investment to keep your current life insurance policy in effect. After all, life insurance can provide support for loss of income to your family when you pass.
Are my children and spouse self-sufficient?
While you may be in a more comfortable position in your life than someone with a young family, that doesn’t mean you should opt to drop your policy just yet. For example, if you still have children who are financially dependent on you for income, it’s wise to keep your policy intact. In addition, if your spouse has the potential to lose the benefits of your pension or Social Security income when you pass, life insurance can make up for the financial loss.
Am I currently managing an estate?
Did you know that life insurance could be used as an estate-planning tool? For example, if you have a family farm that you would like to remain within your family or a business that lacks sufficient liquid assets to cover estate taxes, a life insurance policy can be integrated with your estate plan. Often, by doing this you’ll be able to provide flexibility to heirs and help them retain benefits.
Your life insurance needs will likely change as you come closer to retirement. A review of your current policy is advisable during this period of time. As you enter retirement, there are many things that you will need to plan for. Evaluate your policy to ensure that you’re not paying more than you need, but be sure your family still has the protection they deserve. If you would like to learn more about your options and the next steps to take, Give Term Life A Call Today, or use our simple and easy-to-use life insurance calculator to get a better understanding of your current and future coverage needs.