Life insurance is often touted as your trump card should you die during the prime of your life. Nevertheless, when the kids have flown the nest and you have little to no responsibilities left, it can seem silly to keep paying for life insurance after retirement.
Here are five reasons why keeping your life insurance after retirement going is crucial.
Why Keep Life Insurance After Retirement
Final Expenses
It’s expensive to die these days. Sadly, you can’t just bury yourself in the yard any longer. According to Seniors Life Insurance Finder, it can cost around $10,000 when all final expenses are taken into account.
Don’t burden your family with these extra costs. You can cover these final expenses through even a small life insurance policy. Be sure to check out these top guaranteed life insurance carriers to find the one that’s right for you.
Supplemented Income
When you retire, you don’t have a regular income, other than your pension. Most life insurance policies can be leveraged in such a way that they will enable you to supplement or replace your income.
Life insurance after retirement could enable you to stay in the family home and avoid downsizing. It could also give you extra to enjoy those golden years to the fullest.
Estate Taxes
Uncle Sam doesn’t care if you’re dead. If you owe him money, he’s coming to collect. Some families have had to sell off family heirlooms and assets at below market value simply to keep up with the payments.
Life insurance after retirement can prevent this from happening. The money saved up can allow you to pay off any outstanding taxes.
Inheritance Equalization
Giving an exact amount to your various children can lead to bitter family disputes. Let’s say you have three children and two of them want to inherit the family business. The third one has no interest in it.
Life insurance after retirement can provide for this third child in a way that gives them the same value as the other two children. This will help to keep the peace and stop any unnecessary squabbles.
Of course, this does require some advanced thinking. You need to try to determine the value of what you’re giving to each of your children. This is where it pays to bring in a financial advisor to help you work the whole thing out.
Supporting a Charity
If you have a cause that’s close to your heart, or you would simply rather have some of your money go to a good cause rather than the government, giving to charity is a fantastic use for life insurance after retirement. There are varieties of tax exemptions for people who give a portion of what they leave behind to charity.
These are five very good reasons to keep your life insurance premiums going when you retire. You also have to remember that many insurance providers stipulate that if you stop paying you will lose anything you have accumulated in the past.
If this is unacceptable for you, keeping your policy going is a must. Nevertheless, taking out life insurance early in life will help you avoid any high premiums when you do reach retirement, so keep that in mind.
I’m not sure why people would get rid of their life insurance! I’m only 24 and I’ve already been paying on mine for two years. I want to ensure my children are provided for and I don’t leave them with significant expenses when I’m gone.