Most of us think about Life Insurance as protection against loss should we die prematurely. If and when we reach retirement and the kids are all self sufficient, do we still need life insurance? The answer is maybe or maybe not. Here might be some situations where life insurance may make sense for retirees, or those that are close to retirement.
Benefits at death
Provide for a dependent family member
Sometimes, event in retirement their are family members who are dependent on you for financial support. Should you die unexpectedly, life insurance may provide assistance needed to support that family member who are physically or mentally challenged.
Income replacement for surviving spouse
Most of the time social security benefits are paid to both spouses, either based on their individual work records or the one of one spouse with benefits available for the other spouse. When one or the other spouse dies those benefits stop reducing the benefits to the surviving spouse. Life Insurance can be used to replace the loss of income for surviving spouse.
Pay off that debt
While generations before often retired with little or no debt, but it is not uncommon for today’s retirees to leave the workforce while still carrying a mortgage, car loan etc. Life Insurance can provide the cash needed to pay off these debts which is beneficial for the surviving spouse.
Leave a legacy
For most people reaching that retirement age their main goal is to have enough savings to provide income needed through those retirement years. While conserving savings and keeping track of spending is important, a lot of times retirees will not spend that money to leave that money to their kids and grandchildren. The proceeds from a life insurance policy can provide family members with a legacy while the retiree can spend their hard earned money on themselves.
The expense of dying is often overlooked with uninsured medical bills, funeral costs, debts and estate costs. These expenses are paid in a lump sum, which will reduce savings for surviving spouse and family members. The proceeds from a life insurance policy can be used to pay for these expenses which will help preserve that money you have in savings.
This is for information only and is not an offer to sell, or a solicitation of an offer to buy the securities or instruments mentioned. The information has been obtained or derived from sources believed by us to be reliable, but we do not represent that it is accurate or complete. Any opinions or estimates contained in its information constitute our judgment as of this date and are subject to change without notice. Carter, Terry & Co., Inc., or its affiliates may provide advice or may from time to time acquire, hold or sell a position in the securities mentioned herein. Past performance is not indicative of the future performance.