Retiring is a right you earn after a lifetime of working and planning. To be able to sleep when you want, take trips as you please, and enjoy the remaining years of your life is a priceless luxury that you work towards while you are still young. As your retirement approaches, you are left with more decisions than just where to retire. You should also consider whether or not you still need life insurance. If canceling your life insurance seems like a foreign concept, take these conditions into consideration.
Financial Security during Retirement:
As you are younger and working for everything you have, life insurance is a way to protect your loved ones from the financial burden if anything happened to you. These could include existing bills, loans, funeral arrangements, etc. At that time, life insurance is an investment for protection in case of tragedy.
As you reach your golden years, you have the option of retiring. This means you have a steady flow of income that surpasses current costs of living, or a hefty savings account balance that will outlast you. Either way, you have a financial freedom that you worked towards. With this freedom comes the ability to weigh the need for life insurance.
If your income will continue after you have passed on and will not leave your loved ones struggling, you may very well be wasting your money on life insurance. If you own your home, your car, and have no debt, there is no need to continue paying for life insurance. Another option is to set aside funds for proper funeral arrangements, or even pre-pay for your funeral yourself. In the event of your passing, the costs will already be paid for and your remaining assets will go to whomever you deem within your Will.
Conditions Where Life Insurance is needed:
Even after retirement and with financial security, there are conditions that will require life insurance. For instance, if your passing will eliminate a substantial portion of the family income, you will need life insurance to offset the loss.
Another condition would be if you own a thriving business with a high net worth. Your business may be subject to estate taxes after your passing. Estate taxes will often create a financial hardship on the family if you have decided to cancel life insurance.
As health care has grown and allowed longer lives, many older couples are adopting children and becoming aging parents. If you have non adult children, keeping your life insurance is needed to protect that child.
Determining whether or not you still need life insurance is a decision that takes a lot of planning and consideration. Though many decide to keep their policies in place during retirement, there are situations where you may no longer need your life insurance policy. Take a look at your current financial situation, assets, taxable estates, and the possibility of future monetary risks your passing may cause to determine if you need life insurance.
Clayton Lawrence is a personal finance guru and blogger for wholetermlifeinsurancequotes.org, a website that offers free term life insurance quotes.