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Retirement Life Insurance Needs - Do You Still Need Coverage Over 65?
Author: Marilyn Katz
Life Insurance Needs After Retirement
Your needs will change after you get your gold watch and leave your office or factory floor for the last time. But does that mean that your needs for a life policy will entirely evaporate? Well, the answer will probably be different, depending upon your own goals and financial situation. Let us look at a few options for obtaining a life insurance policy after 65 (or any retirement age).
What are Your Obligations?
Your kids may be grown and gone. In a perfect world, they will be educated and off supporting themselves, and maybe they will even have their own kids. You may still have a spouse who depends upon you, but his or her needs may be less than they were 30 years ago. The home mortgage that loomed large 2 decades ago has shrunken or been paid off (we hope). And again, in that same idea vision, debts are low, and there is some money in the bank to settle them if anything would happen to you.
Does this sound like you?
Well, this is a great picture of retirement, but it isn't always the story with many people these days. Those kids do not always complete their education on schedule. And in this current tight job market, even many college graduates are still seeking to begin their first real job. Grown kids, sometimes with their own kids, are moving back home or asking for parents to help support them financially.
Did the Home Get Paid Off?
Sure, we all planned to pay off our mortgage by age 55. But then our jobs changed and we moved. Or we lost a job and had to refinance or take out a second mortgage. Sometimes those homes do not get paid off on schedule either.
Can Your Savings Survive a Problem?
If you needed to dig into your savings because of a medical problem, can you still leave your kids or spouse any money? Several months in a nursing home can wipe out a lifetime of savings. A life insurance policy is one way to make sure that your survivors still inherit something.
Would Paying for a Funeral and Final Expenses Be A Cash Burden?
US funerals can cost $8,000 or more. And that is money that usually needs to be produced right away. Would that expense be hard on your surviving spouse or kids? A small life insurance policy, designed to pay for senior final expenses, can be an affordable way to plan for that.
Does Only One Child Inherit a Business?
Another use for life insurance is to plan for the transfer of wealth. Picture the owner of a small law firm. His daughter attended law school and is being groomed to take over the firm when he dies. However, he also has two sons who are not lawyers. One teaches high school math, while the other one became an engineer. In order to be fair, the law firm owner would like to leave his sons something, but would like to leave his daughter in charge of the law firm. A life insurance policy can provide a buyout option for the other surviving children when only one child will inherit a business.
Do Retired People Need Life Insurance?
If your savings and retirement income are adequate, and you do not have many outstanding obligations, you may not need to be covered. However older people can use a policy to plan for retirement and estate transfers.
Learn More About Retirement Life Insurance
If you want to shop around, we can help you find life insurance for older people with our fast, safe, and free quote forms. There is no obligation, and the forms are simple to fill out.
You can find a variety of plans and premiums to fit your needs and budget. You can even search for final expense insurance rates.
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