Do you need life insurance after you retire?
Originally Posted On: https://www.iquanti.com/
It’s not uncommon to assume you don’t need life insurance during retirement, but there are plenty of reasons why you might be glad to have it after retirement.
Every life insurance company offers different products that may be worth having before and during retirement. Here are some general things to consider when determining if you need life insurance after retirement.
How much debt are you carrying?
While it’s ideal to enter retirement debt-free, it’s not always feasible. Many homeowners still carry a mortgage into retirement, and there are other debts that are becoming more common among senior citizens. Student debt in particular is starting to follow senior citizens into retirement who are either from carrying their own debt or debt from cosigning a loan for a child or grandchild.
Continuing life insurance coverage can help ensure such debts are taken care of rather than inherited by a cosigner or coming out of your estate.
Is your family self-sufficient?
If your children provide for themselves and their children and don’t depend on you at all, you might not need life insurance. However, if you have children and/or grandchildren that depend on you, you might want to keep that safety net intact for them.
Another reason many retirees keep their life insurance policy is if their spouse would lose out on pension income that they depend on.
Do you already have a permanent life insurance policy?
If you already have a permanent life insurance policy, it may make sense to keep it. A permanent life insurance policy is designed to stay active for the rest of your life, including throughout retirement.
In addition to providing a death benefit to your beneficiaries, permanent life insurance comes with cash value that accumulates over the course of the existence of the policy.
Would It Help Your Estate?
If you’ve been building a legacy to pass on, life insurance can be a strategic tool that helps you create your estate in an efficient way and help ensure it’s handled exactly the way you want.
Navigating this can be very complicated, and it’s best to enlist the help of an attorney and/or financial advisor who specializes in estate planning to help you plan. It never hurts to review your options with a professional expert, but generally speaking estate planning will be most important for those who have a multimillion dollar value estate.
The Bottom Line
There are a number of reasons to have life insurance after retirement, to continue to support your spouse or family, to ensure your debts will be taken care of, and to build and protect your legacy. Be sure to consult a financial advisor to review your specific circumstances and determine what would be best for you.