If you purchased life insurance, you most likely did so to protect your family from the loss of income that would result from your untimely demise. This begs the question: Do you still need life insurance after you have retired? Or does it make sense to keep paying your monthly insurance bill – even though it gets more expensive as you get older?
To be sure, if you think paying for life insurance no longer makes financial sense for you and your family, then you may be well advised to cancel your policy altogether. But keeping your life insurance policy active throughout your retirement years does yield several often overlooked benefits.
Life Insurance Helps Your Surviving Family Members Pay Off Debt
Your surviving family members will surely have a lot on their minds in the event of your passing. They should not have to worry about paying off their debts as well. As American seniors increasingly accumulate debt, you may leave behind one or more co-signers to foot large bills in your absence. The quick infusion of money provided by a life insurance payout may give your widow or widower the means they need to tie up loose ends. This can also help them adjust more easily to life without you.
It Can Support Your Spouse Even if You Are No Longer Working
It may have been years since you punched a clock, but your pension is still going strong. If your pension will cease to exist upon your passing, then your life insurance policy will help compensate for the loss of income. The income that your spouse or other people you care for depend upon. And considering that Social Security is expected to run out of the funds it would need to make full payments in 2034, your life insurance policy may prove all the more valuable to your spouse and other heirs.
Life Insurance Helps You Leave Something Behind to Your Loved Ones
Your family members would surely rather have you stick around, but when you must go you might as well leave them something nice. Your life insurance policy does not have to go through probate court. If you maintain your life insurance policy throughout your retirement, your heirs will receive a fast and tax-free death benefit upon your passing. Life insurance is one of the most secure ways to pass down wealth for this reason.
This presents a great advantage if you wish to leave behind a legacy. Instead of scrimping and saving while you are alive to make certain your loved ones receive an inheritance, you can spend what you have while you’re still able to enjoy it. Then you can let your life insurance policy take care of everyone after you’ve gone.
It Can Support You While You Are Still Alive
Your life insurance policy needn’t necessarily only go into effect once you are no longer around to benefit from it. Some policies include a provision called an “accelerated death benefit.” This provision pays out a portion of the life insurance to the policyholder in the event of terminal illness, hospitalization, or assisted living or hospice care.
Although an accelerated death benefit doesn’t exactly take effect under the cheeriest of circumstances, it can help to keep you more comfortable during your old age. It can also help safeguard any savings you would rather have go to your heirs.
Contact The Hoffman Agency for Coverage
The decision to purchase or stop a life insurance policy is complex. It should only be made after you’ve carefully considered your own unique needs, and ideally with the help of an expert. If you live near Sioux City, Iowa and would like help with life insurance policies, then we welcome you to contact the Hoffman Agency today. Our team has decades of experience and are ready to help!