Many people don’t give life insurance much consideration during their working years. Since the employer often provides it, you probably haven’t had to, but what happens after retirement? Do you still need it? Here are some reasons you do.
Pay Off Outstanding Debt
While many have become debt-free and financially independent by 65, many have not. If this is you, life insurance after retirement will help protect your loved ones from any outstanding debts and pay for funeral costs.
Cover Estate Taxes
If you have an estate to pass down, you may want to keep your life insurance after retirement to cover any estate or inheritance taxes so that the burden doesn’t fall on your family.
Bypass Probate
If you wish for your loved ones to avoid a complicated court proceeding following your death, continuing coverage can help them to bypass probate. By naming your beneficiaries on your plan, they will automatically receive their payout provided all beneficiaries are still living.
Replace Your Spouse’s Pension
In some instances, a spouse cannot receive their spouse’s pension after passing away. If this was a significant portion of the household income, the loss could be a tremendous financial burden. Keeping Life Insurance into retirement is one way to ensure your spouse remains comfortable in old age.
To protect your family’s financial health, it is a good idea to remain insured even after retirement.