You may think you do not need life insurance after you retire because your children have grown up and moved out and your spouse has enough money from savings and/or Social Security to live on. But thinking that would be a mistake. Life insurance is important at every stage of your life. Here are three reasons you need life insurance in retirement.
Life insurance can help cover final expenses. Funerals can be costly, and you probably do not want your family to bear the cost. A small life insurance policy can cover these final expenses.
Your dependents may need you more than you think. Your spouse may be self-sufficient and your children may have grown up and moved out, but in the future, a dependent could find that he or she does not have enough money to live on after you pass away. This could occur for many reasons.
Your estate taxes may be higher than you think they will be. Most of us are not in a position to worry about significant estate taxes, but if you have a large estate, you may want to consider buying a life insurance policy to pay the estate taxes that will be due. That way, your heirs will not be stuck with the tax bill, which may be hard for them to pay, especially if your assets aren’t liquid.
If you fall into one of these categories, you may want to consider life insurance in retirement. You have a number of options, including permanent and term, which come with different costs and benefits.
But life insurance can be complicated, so it is a good idea to get assistance if you want to review your policies or buy more. I can help, so please call or email me if you have any questions about life insurance in retirement.