Life Insurance for Retirees

life insurance policy

Most individuals have only one thing in mind when it comes to retirement: life insurance. Generally, there are misconceptions about life insurance, such as the idea that it keeps us insured. This notion therefore leads us to question ourselves about the need for it once we’re retired.

The necessity of having life insurance is totally dependent on certain facts regarding on how do we really need it. Below are things we should keep in mind when it comes to getting life insurance.

Life insurance is needed in these types of situations:

  • Individuals or couples earning for their retirement.
  • Retired individuals who will experience financial loss on the account his or her spouse dies.
  • A family consisting of parents and children who haven’t ┬áreached the age of adolescence.
  • Individuals who owns estates that will be a subject to estate tax.
  • People who own businesses or who is a part of it.

Do you need life insurance?

Should you have life insurance covers up financial loss in the event when someone dies? If you ask yourself this question and the answer is no, you won’t need it then. A retired person who has an investment which serves as his or her source of retirement income will not need any life insurance even though his or her partner dies, because there is still a continuous flow of income.

Wanting to have life insurance

If there is no possibility of experiencing any financial loss when you die, then wanting to have life insurance can serve a better cause. This can probably be the best value of having life insurance: providing someone or a charitable institution some benefits upon your death.

The appropriate amount of life insurance

This depends on how much money you assume your intended beneficiaries will need. The amount to cover-up that financial loss is the right amount that you need.

The timespan of needing life insurance

Financial loss is not always there. But having life insurance will be helpful to any surviving members of the family especially if your spouse will be retiring soon. In other words, having life insurance means a legacy of stability for your family.

The kind of life insurance you will be needing

If you are talking about a limited financial insurance, that is filling the gap from the present up to retirement, the kind of insurance that you will need is a temporary policy term insurance. However, if there is a possibility of an increased financial loss like several bills to pay or tax liabilities, a permanent life insurance policy is what you need.

Though it will be more costly, it will be enough to cover any major expenses such as business or estate taxes. If you are also thinking that you will live up to the ripe age of 100, the permanent insurance with universal policy will be the best choice for you.

 

Posted by Ardent Editor on Nov 4 2008 in Retirement 101

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