One of the primary motivations for getting life insurance is to cover your loss of income in the event of tragedy. So once you’re retired, if you have a decent amount in savings, your house is paid off and the kids have moved out, there’s no point carrying on with life insurance, right?
Not necessarily. While that is certainly the case for some, there are still plenty of reasons that life insurance might be a good idea even after retirement. So if you’re at or near retirement age, you might want to consider the following questions before you go ahead and cancel your policy:
Many people opt to keep working during their traditional retirement years simply because they enjoy their work and want to keep busy even though they don’t necessarily need the income. However, if you’re still on the job because you and/or your family still depend on the income it’s bringing in, you’re going to want to hang on to your life insurance policy.
Whether it’s from helping the kids get through college, a failed business venture, a bad real estate deal, or you just haven’t finished paying off your mortgage, it is not uncommon for people to enter their retirement years with debt still looming over their heads. If this is the case for you, cancelling your life insurance policy could put your loved ones at risk in the event of your death.
Your kids might have moved out years ago, but if you’re still helping them financially – whether it’s to assist with student loan payments, car payments, or medical expenses – your life insurance policy could be a valuable safety net for them should you pass away before your children are able to provide for themselves completely.
Between medical expenses and assisted living, caring for an impaired loved one can be a life-long financial commitment. If you have a disabled child, sibling or other family member who depends on your financial help to get the care that they need, your life insurance policy can ensure that they continue to receive treatment after you’re gone.
From funeral arrangements to estate and inheritance taxes, life insurance is a great way to make sure that those you leave behind have enough to handle the costs of your passing. Funerals can cost anywhere from $10,000-$20,000, and if you leave no liquid assets behind, your family might have to go through the hassle of sorting through and selling your non-liquid assets (property, stocks, jewelry etc.) which can put a lot of unnecessary strain on your already grieving loved ones.No matter what, it’s a good idea to take a serious look at your expenses before cancelling a policy. If you do cancel and then discover that it’s still in your best interest to have a life insurance policy, you most probably won’t be able to recover your policy at your previous rate. Consult a life insurance professional at Intramark today to find out if post-retirement policy is right for you. You can also get started with an instant life insurance quote today.