Deciding whether to continue paying for a life insurance policy as you near the age of retirement can often be a challenging decision. Although life insurance is a great way to cover lost income for dependents in the case of death during the ages of 20-50 years old, shifting changes in finances can often make life insurance unnecessary. Through making use of life insurance education, it should be possible to make these challenging decisions.
Evaluate your current financial situation as you approach retirement. In the case of having a dependent such as a spouse, it is always important to plan for their needs. Most people who are retiring will not have to worry about supporting their children as they will have most likely moved out. The main question to ask yourself is if there will be a major financial loss upon the instance of your death. If you have a lot of investments or a large sum of money saved up, it may not be necessary to have a life insurance policy.
A life insurance policy can be a good way to leave behind a legacy for your name. According to About.com, “Even if there will be no substantial financial loss experienced upon your death, you may just like the idea of giving up some income now so that family, or a favorite charity, will benefit upon your death.Life insurance can be a great way to pay a little each month, and leave a substantial amount to a charitable cause.” Such an endeavor will allow for the bulk of your savings to be used as financial support for a surviving dependent or as funds for your will.
If you have a very significant net worth, such as over a million dollars, then a whole life insurance policy is a great way to pay the estate taxes. This facilitates the transfer of the estate to the intended relatives who would likely be unable to afford the estate tax.
Be sure to contact us at Retirement Think Tank if you have any questions about investing in a life insurance policy during retirement.