Do you need life insurance after retirement?

life insurance

When the average person reaches the age of retirement, he or she often thinks about what to do for the rest of his or her life. They may even think about continuing employment elsewhere or going on a long-awaited vacation with their family. What most people do not ponder about is buying life insurance after retirement.

Understandably, this issue didn’t seem to be of the utmost importance to a retiree but if you were to ask yourself: “Would my family suffer financial difficulty if I were to breathe my last tomorrow?” and admit to answering “YES”, then you definitely need a life insurance policy as a backup plan.

Nonetheless, retires should still be prudent in financial planning even after they are considered past their prime, and taking up a life insurance policy even when you’ve hit 55 years of age may be one of the wisest decisions you’ll ever make. 

What’s in it for retirees?

It is not unusual to have people purchase term life insurance that covers policyholders up to age 100. This is because they staunchly believe in the benefits of life insurance even after retirement.

Other benefits you would enjoy when you choose to retain or sign up for a life insurance policy upon retiring include:

  • Have enough funds to pay for your own funeral: While this sounds a little morbid to some, I think it’s perfectly sensible to think about how your funeral will be paid off in the event of your death. While all of us wish to leave the procedure to our next-to-kin, the sometimes-astronomical cost of funerals may even burden your loved ones. Having a sound life insurance policy ensures all funeral expenses are taken care of, which will leave you to depart for the afterlife happily and without unfinished business.
  • Pay off old debts: More and more people are, regrettably, retiring with even more debt than they do in their prime. It would be such a shame to leave a legacy of bad debts behind. Instead, you can use your life insurance payout to settle these debts so that your dependents won’t be saddled with expenses or be forced to liquidate your assets.
  • Settling after-death taxes: Again, like funeral expenses, after-death taxes can burden your loved ones with its significant amount. Tax implications exist whether you like it or not, and a good life insurance payout will ensure this is does not cause unnecessary worry to those who are still in the land of the living.
  • Leave a memorable legacy: Who says you won’t be useful after death? Prove your worth, literally, by donating to a charitable cause of your choice.

If you already own a life insurance policy…

If you have been prudent enough during your youth to purchase a good life insurance policy, then congratulations are in order. Now, all you need to do is strategize well and make use of your existing policy as you approach your twilight years. Strategies include:

  • Consider not renewing your term policies: You may have bought term policies earlier when you were thinking about your kids and spouse. However, now that they are all grown up, they are able to fend for themselves and will not need to depend on you as much. This is a great time to save money by letting your term policies expire and in the process, fall back on your pension benefits and Social Security for income purposes.
  • Enjoy better cash flow by making your dividends pay premiums: This is especially useful if you possess a whole life policy, which frees up some cash and may lead to tax-deferred growth.
  • Purchase a life annuity: Exchange your whole life policy for a life annuity which will bring you more active benefits. 

Qualifying for affordable retirement life insurance

If you’ve decided you need life insurance to accompany you into your twilight years, you now need to think about passing the risk assessment associated with purchasing a life insurance policy. Besides taking good care of yourself (it’s never too late to stop smoking and start exercising), you can educate yourself on high risk life insurance companies as some provide good policies for retirees over age of 50.

Comments: 9

  1. Alejandra October 22, 2013 at 11:20 am

    How can i find out about life insurance coverage for estate planning online? I’d consider both for a small fee as well as for free. I’m not thinking about generating any kind of a diploma or license.

  2. Malcolm October 22, 2013 at 11:26 pm

    Retirement, Life Insurance Coverage, stocks/bonds, Accounts etc. We’re while the divorce and that i need that information he has stored from me. He’s very controlling and it has that stored private. I’ve already seen an attorney… Is not there a good way for that lawyer to ask that information from him? Does my lawyer need my input to ensure that we are certain to have All the information? I am confused. We’ve been married many years.

  3. Lucas October 23, 2013 at 11:26 am

    I’ve another Life insurance coverage policy and that i have no need for another one. Can you really cash for the reason that policy?

  4. Valentine October 25, 2013 at 7:05 pm

    Searching to obtain life insurance coverage on myself. Have to replace 70K each year earnings in case of my dying. Have to support my spouse and college old boy. Which kind of insurance might be best, and which kind of investment recommendations might be given in my family to take a position the cash and live from the interest, departing the main untouched?

  5. Gregg October 26, 2013 at 5:26 pm

    I’m wondering if I must report as savings a little life insurance coverage policy that’s not gained earnings. I ensure that it stays inside a checking account but it’s not regarded as gained earnings right? I’m attempting to safeguard it if whatsoever feasible for problems only.

  6. Shelba November 5, 2013 at 6:27 am

    We’ve had our Permanent Life insurance coverage insurance policy for annually now. It’s a insurance policy for $25,000. Our monthly fees are $25.14 per month and that we have compensated that for 12 several weeks now? The amount of money value do you consider we’ve committed to it? We’re inside a desperate financial need at this time, and want to gain access to some cash from your policy.

  7. Alayna November 26, 2013 at 10:30 am

    What type of life insurance coverage might be best suited to a 26 years old in good condition who’s the only earnings in the household? Bear in mind which i support a stay home husband, and also have 3 children. No assests with no debt. Thanks.

  8. Suzanne November 28, 2013 at 1:20 am

    Can anybody please let you know that do life insurance coverage agencies (or financial advisory agencies) make their profit?

    Is the fact that correct that the life insurance coverage information mill having to pay around 100% of total newbie premium towards the agents? How can the companies split by using the agents?

  9. Claire December 5, 2013 at 1:11 am

    I must have a life insurance coverage insurance policy for my dad, making myself the beneficiary. I’ve all his information, but he lives from condition. What must i do in order to acquire one? Thanks ahead of time.

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