According to LIMRA Secure Retirement Institute, 63% of parents over 55 are still supporting their children and/or grandchildren. Think about what would happen if you're no longer there to support them; who would they turn to for financial help? Life insurance can provide the funds to maintain that support even after you're no longer with them.
2. To Pay Off Debts.
According to LIMRA, retirees age 65-74 who still have installment debt have education debt of an average of $2,300. Sixty-four percent of their debt is comprised of vehicle loans. Many retirees also still have mortgage debt. Life insurance is a way to make sure that these debts are paid off once you're gone. You don't want to leave those debts for your family to have to pay.
3. You're Retired, but Still Working.
Many Americans choose to continue working even after they retire. If you're still earning money that you rely on, you'd need to replace that income. Think about how much earned income would be lost due to your death. If you don't have any assets, life insurance can create these assets at the time of your death.
4. For Estate Planning.
Life insurance is often used as an estate planning tool for wealthy retirees. Life insurance could be used to pay estate taxes, instead of selling assets at an inopportune time. Life insurance can also be used to distribute assets equally among your heirs.
5. To Replace Your Pension.
If a large part of your retirement income is provided by a pension, you might need life insurance to cover it. If your pension doesn't have a survivorship option, how is that income stream for your spouse or other dependent replaced? Life insurance can replace it by creating assets that can be turned into an income stream.
6. To Cover Unexpected Expenses.
Life insurance with a cash value policy would help you pay for unexpected expenses. You can either withdraw some of the cash value or take a loan out against the policy. A small policy is often times used for funeral expenses also. Insurance benefits are usually available to heirs immediately.
Talk with your Lake of the Ozarks insurance agent about why you may want to keep your life insurance policy even after you retire. Even if you aren't ready to retire, it is important to make sure your life insurance coverage is up to date and is enough to replace your income once you're gone. Contact Insure the Lake today at 573-348-2794.
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About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.
Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral