Because of the past economic downturn many people have suffered a sizeable loss to their retirement savings. In an effort to rebuild their investments, most now prefer to utilize conservative savings vehicles which offer a high level of protection against any future instability in the market.
For those who are approaching the age of retirement however, it’s not quite so easy. After all, they have less time to make up the losses. Nevertheless, life insurance can be helpful.
An often asked question is "Do you need life insurance after retiring?" Companies do tend to provide at least a basic insurance for employees who reach the age of retirement, but is it enough? The answer is personal to each individual. Some may need to purchase a life insurance policy on retirement, where others may not.
The payment of estate taxes is one of the main reasons why retirees take out a life insurance policy. Particularly where large estates are concerned, if you have a life insurance policy in effect, it can save your spouse from having to liquidate any part of the estate in order to pay for taxes.
Generally and for most people of retirement age, life insurance requirements tend to be very small. Debts have been paid off and the children are now independent and can stand on their own. Thus, perhaps the main concern is to pay for funeral expenses and alleviate this burden on any of your loved ones. Usually a policy between $10K to $50K is plenty to cover all burial and funeral costs.
Unfortunately, not every retiree will be fully free of debt. You may still have some years left to pay on a mortgage, or you could have some health issues to deal with. Perhaps your retirement money has dwindled in the economic crisis. With a life insurance policy, your spouse can be free of financial burdens upon your death.
You may wish to consider leaving a beneficiary amount for your children or grandchildren with the proceeds from your death benefits.
As you progressively age, life insurance does become more expensive. Nevertheless, there are insurance carriers who provide competitive rates. Further, if you are in good health, the cost of life insurance drops further. Online quote providers make purchasing a policy not only easy but far more affordable than ever it was. It’s advisable to look for BBB – accredited sites that offer to provide quotes from only reputable companies. With multiple quotes you can be assured of getting the most suitable and most affordable insurance cover.
Life spans are growing, and there’s a good chance that you and your spouse will live to a very healthy age. Therefore, you may need to make your savings last longer than you originally planned. One way to do that without worrying about a potential shortfall is to invest in a life insurance policy. It could be the perfect solution in the circumstances!