If you’re in retirement, you may be asking yourself, “Do I still need life insurance?” It’s easy to say no when the kids are out of the house, and the house is already paid off, but the reality is that there are still situations where life insurance for retirees is absolutely necessary. If you’re in retirement and aren’t sure if you still need life insurance, here’s some questions you should ask yourself:
What Should Retirees Consider When Looking into Life Insurance?
- Are you working? If you are not currently earning income while in retirement, there may not be much of a need for life insurance. However, if the your death may lead to significant loss of income (such as for your spouse or dependents), there could still be a need for life insurance even after retiring.
- Are your children or spouse self-sufficient? Just because you are retired does not mean you don’t have a family to look after. For those who had children later in life (children who may not be out of the house just yet), life insurance is an absolute necessity to ensure their safety should their parent pass away. Also, if one spouse is dependent on the other’s retirement savings or income, life insurance will ensure they are not left with a massive loss of income when the other spouse passes away.
- Are you in debt? If you are still paying off debts (such as from real estate deals, failed business ventures, or student loans), life insurance is a must if you want to make sure your family won’t be saddled with debt upon your passing.
- Will you need to pay estate taxes? Life insurance can be an excellent estate planning tool for those who may not have enough liquid assets to cover estate taxes after their passing. If you are looking to keep some property or other assets in the family after your passing, you may want to look into life insurance.
- Do you want to leave a legacy? If you have money that you intend to leave to your children or grandchildren, there are certain methods of designing life insurance that are efficient, tax-advantaged ways to ensure that the money goes to your heirs.
- Do you want life insurance? It seems like a simple enough question, but it’s one that many don’t even consider. However, you might be looking to leave some money behind for your family or even a charitable cause upon your passing. Life insurance will allow you to leave a substantial amount simply by paying a little in every month.
What Is the Best Type of Life Insurance for Retirees?
Just as there are many questions to consider, there are many options when it comes to life insurance for retirees. Here are some options based on some of the aforementioned situations:
- Term Life Insurance: While term is generally thought of as life insurance for younger clients, there are certain situations in which it can benefit you in the early stages of your retirement. This is an excellent choice for retirees who are still in debt, as a term life policy that lasts until the payments on the debt are scheduled to end will help to extinguish that debt. Term life may also make sense if you continue to work after retiring (even if it’s just part-time), in order to supplement savings and to protect your spouse from the loss of income that would occur when you pass away.
- Whole Life: This can be an effective tool to cover final expenses, or to pass money along to a spouse or dependent.
- No-Lapse Universal Life: Many of these policies will protect policyholders up to age 120, so if you are looking for life insurance, but your don’t anticipate passing anytime soon, you will be secure in the knowledge that you and your loved ones are protected. Certain policyholders, upon retiring, may find that they have a cash-value whole life or universal life that still requires ongoing premium payments. You may choose to use the cash value to convert to a fully paid-up no-lapse universal life with a guaranteed death benefit that would not require ongoing premiums.
Retirees and Life Insurance
Just because a you are retired does not mean that you can’t benefit from life insurance. Everyone’s situation is unique, so it is important to consult a qualified life insurance agent on what will best benefit your wants and needs. If you’re looking for a quote on life insurance in order to consider what discussion you might want to have with an advisor, look no further than Quality Quick Quote. Our free, no-obligation quoter and our experienced life insurance professionals will help you in your search for life insurance, no matter what stage of life you are in.