If you think you don’t need life insurance anymore because your last child has moved out of the house, think again.
Your circumstances may have changed, but there’s a good chance your future needs may require you to maintain your life insurance policy.
Many individuals consider life insurance a way to provide for their children in the event of their early demise.
In fact, life insurance is a way to provide for financial obligations – and empty nesters have financial obligations too.
You may have a mortgage on a home or a second home, for example.
What would happen if you or your spouse died or became disabled?
Would the other be financially devastated?
If the unthinkable happens – particularly if it happens close to retirement – the living spouse may be forced to work long into his or her golden years.
That’s already happening.
According to a study conducted by the Employee Benefit Research Institute, the percentage of workers who expect to retire after age 65 increased from 25% in 2006 to 36% in 2010. Moreover, the percentage who expect to work in retirement increased to 74%.
If that’s what is necessary in the best of circumstances, what would happen in the worst? It’s a good question to ask – and life insurance may be the answer.
Life insurance can help protect your retirement savings, which will ensure that you or your spouse will remain financially secure and your estate will be passed on to your survivors in the event of an untimely death.
Before canceling or reducing your life insurance coverage, you may want to take some time to ask how it might still be relevant and then speak with your financial advisor.
Regardless of your age, there are a number of choices when it comes to life insurance, all of which can be tailored to your unique circumstances.