Friday, October 28, 2016

I am Retired -- why would I need Life Insurance????


Image result for retired images
I hear this pretty frequently -- I am retired and I really have no need for life insurance.  I have accepted that with a nod and simply move on to discuss other aspects of my clients insurance needs -- but  as I drive away it occurs to me that maybe they are wrong and just because they are retired does not mean they no longer need life insurance.
For this reason I compiled  my top 10 reasons why those retired folks need some permanent life insurance in force even after retirement:
  1. It allows you to be more aggressive in spending your retirement funds on your own needs (We’re spending our children’s inheritance!) because you know that the life insurance will be there for your heirs, replacing the money you are spending with the income tax-free life insurance death benefit.
  2. A portion of the death benefit generally can be available to help pay for care if you develop a terminal illness, and it can be used for additional care or other needs.
  3. If you have to use your other liquid assets to pay for long-term care of any kind, the life insurance death benefit can replace those assets when you die.
  4. The cash value in the life insurance policy can provide a ready source of cash if an emergency arises.
  5. Recent studies show that almost 70 percent of individuals expect to be working either full- or part-time in retirement. Life insurance can provide money to replace that much-needed income stream when you die.
  6. Life insurance can help satisfy some individuals’ need to control assets. You don’t have to gift away assets to avoid estate taxes because the life insurance benefit will be there to help pay those taxes.
  7. Not all retirees are debt-free. Life insurance can help pay off any debts at your death.
  8. Life insurance can be useful in dividing assets when there are children from second (or third) marriages.
  9. The life insurance death benefit provides an extra source of cash for your spouse while he or she adjusts to new circumstances after your death and can alleviate having to make immediate financial decisions to generate cash.
  10. Life insurance can help pay for final expenses, long-term care expenses (through an available Long Term Care Rider), and medical costs that may not be covered by Medicare.

Having life insurance in retirement can help provide much-needed peace of mind to you and your family members.  As the saying goes, Life insurance is not for those who die, it’s for those who live. There are plenty of reasons to have life insurance as you get older, so don’t be too hasty in dropping your insurance once you retire! Talk to your professional insurance agent to get all the facts and learn what may be best for your particular situation.

Call me -- 440-527-0304 to discuss those needs anytime retired or not! 

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