Retirees may still benefit from life insurance.
You have been in the workforce for decades and are now either in or nearing retirement.
Your financial advisor and estate planning attorney recommended life insurance when you were younger.
This made sense to you because you wanted to provide income (and “instant estate”) for your spouse and children if you died.
You are now uncertain whether life insurance would still be helpful to your and your loved ones.
According to a recent Yahoo Finance article titled “Retirees, It’s Not Too Late to Buy Life Insurance,” you can still benefit from having a life insurance policy after you have left the workforce.
Your life insurance policy payment could be useful in paying bills after you die.
Funerals, estate settlement, and outstanding medical bills can be expensive.
Your loved ones may not have this money readily available in cash when you die.
By purchasing life insurance, you could provide a simple, liquid source to pay these various cash calls.
Although life insurance is included in your estate, you can avoid a federal estate tax at this time if your estate does not exceed $11.7 million (under the present law passed under the Trump administration).
Life insurance can also provide a stream of income to supplement Social Security or pension benefits.
If you have a pension, you will need to determine if you want payments to continue when you die.
By selecting the option for survivor benefits on your pensions, your payments may be reduced by 10 percent or more for your surviving spouse.
Although it is easier for seniors to get life insurance than previously, most policies still require medical underwriting.
Before you begin shopping for a policy, you should investigate what is required..
The insurance will look over your medical history to determine whether you qualify.
If you qualify, your health history will also determine the rate you will pay.
Non-terminal health conditions will not often disqualify you, but they may increase your premium significantly.
Taking care of your health before applying may help you to receive a better rate.
Insurers tend to be more favorable to those living a proactively healthy lifestyle.
Working with a life insurance broker who represents and works with several companies can help you find the best fit based on your circumstances.
Although you can seek quotes directly from companies, this is often more consuming of time and energy.
If you are not sure whether you will qualify for life insurance, it does not hurt to apply.
If you do not want to accept the offer, you are not obligated to do so.
Life insurance can still provide financial protection for your loved ones after you retire.
In my nearly 30 years as an estate planning attorney, one thing I have never encountered (and I have seen it all)?
A widow complaining about a her husband’s life insurance policy.
Reference: Yahoo Finance (Aug. 17, 2021) “Retirees, It’s Not Too Late to Buy Life Insurance”