Now that you are ready to retire, it means more free time – and sometimes, less income. And with a reduced income, there are thoughts of ways to save money. After all, you also want more discretionary income to enjoy your free time. Is ending your life insurance policy – or never investing in one at all – the solution? Find out why many people decide to carry life insurance in retirement and well into their golden years.
Retirees With an Income
Some retirees stop working altogether. Others might have a limited or a small pension, which means finding part-time or full-time employment in another field. In most instances, seniors work fewer hours and find jobs with fewer demands. But working seniors usually need an income. And sometimes others depend on the money they earn, including spouses, children, and grandchildren. In this instance, it is prudent to have a life insurance policy to continue to supplement that income when you are gone.
Leaving a Secure Legacy Behind
After decades of hard work, you are comfortable enough kick back during your older years. But you still might not have enough to leave a legacy behind for your loved ones. Saving might be needed for basic living expenses and funeral expenses in the event of your death. And you want to leave something extra for the people you care about.
One of the best ways to do it in investing in a life insurance policy. In most cases, life policies pay out tax-free to your beneficiaries. And you can establish a single premium life insurance policy – or one that requires a set number of known premiums. This way you know exactly what your cost will be.
Paying for Funeral Expenses & Burial Costs
Perhaps nobody continues to depend on you for income. Your spouse might be deceased, and your children are independent. Or you might be on your own. Either way, there will be expenses for your funeral. If you have certain religious beliefs or personal preferences, you might want specific arrangements made for your funeral.
A funeral expense life insurance policy can pay for them to ensure your final wishes are met. Most of our clients think a burial policy is the smart way to go. Instead of a pre-paid plan with a company that might be out of business in the future, you can be in control of the proceeds.
Taking Care of Children Later in Life
People who had children later in life need to consider their well-being and future. Even if your children are in their late teens, there will be expenses for college, transportation, and weddings. If you pass prematurely, these costs could become overwhelming as they need to funds to start their journey forward. You can help take care of them well into the future by continuing to carry life insurance.
This might be done with a shorter term life policy – or a universal life plan. These may expire before they are ever needed, but you know your financial bases are covered if the unexpected occurs.
Family Members With Special Needs
Anyone who takes care of a child, spouse or family member with special needs recognizes there are ongoing expenses for care and treatment. And if any complications arise, these costs can add up quickly. Having life insurance helps take care of a special needs family member long after you can’t. Life insurance gives them the quality of life they deserve.
Owner of a Small Business
Many retirees continue to own all or part of a small business. Some are silent partners while others continue to provide their ongoing expertise in the background. If business partners still rely on your specialized skills and knowledge, it is essential to ensure operations continue as usual after your death. Investing in a business continuation life insurance policy (or key man coverage) helps your successors move forward with less interruption.
Consult with our independent agency to find out whether you need to pay for life insurance in retirement. You might find the expense is necessary to protect the interests of the people you care about most.
Our Life Insurance Brokerage
We are an independent life insurance broker in Columbus, Ohio. Contact us to discuss your options for Medicare insurance and life insurance planning today.