As you’re nearing retirement, a lot of things will have changed since you first bought your life insurance policy. For starters, your house may be almost paid off. Maybe your kids are even grown and gone, finding their way in the world. With the closing of some of these big life chapters, do you still need your life insurance? Here are six reasons why you should keep your policy after your retire:
Debt
Although you’ve retired, it’s possible that you’re still working on debts that have accrued over time. Depending on the kind and scale of the debt, having a life insurance policy can offer peace of mind to benefactors who may become responsible for the liabilities you’ve left behind.
Still Working
According to the U.S. Bureau of Labor Statistics, almost 20% of Americans 65 and older are still working. For many, this choice to continue working is one out of necessity, as Bloomberg.com reported that “60% of American households have no money in their 401(k) or similar retirement accounts.” If your income is still providing for a family or significant other, having a life insurance policy still in place can supplement the income that you provided to continue supporting your loved ones’ way of life.
Disabled Child
As a child with disabilities ages, their care needs become more complex, intensive, and oftentimes, more expensive. If you choose to name a disabled child as a beneficiary, there are a number of things to consider and seek counsel on when choosing/reevaluating your policy. You will want the child to maintain eligibility for government assistance, which can be done by setting up a special needs trust through your policy which would allow the combined assistance of government programs and the benefits of your life insurance.
Charitable Legacy
There are various ways to give back to charitable organizations and causes using life insurance policies. Naming a charity as a beneficiary, adding a charitable giving rider to your policy, and policy donations are a few of the options that give policyholders the power to give back after they’ve passed.
Cover Estate Taxes
If you’ve got a large estate—such as land passed down from previous generations—the cost associated with property and estate taxes can be ominous. Your policy could help cover some of those expenses.
Cover Funerals
Instead of dipping into your savings or retirement fund, a life insurance policy can offset the funeral costs your family will be looking to cover. The average funeral cost? Between $7,000 and $10,000.
Every families’ needs are different. As you think about your retirement—whether you’re planning ahead or looking to make that next step—who or what do you want to take care of?
If you have a current policy or are looking to purchase one, give the experts at Doyle & Ogden a call! As West Michigan’s first choice for insurance advisors, we have close relationships with over 15 companies. That means we can work to find you better coverage, for the best price. Give one of our experts a call at 616-949-9000 or request a free quote online today!
