Should I Keep my Life Insurance Policy after Retirement
The kids have moved out of home, the mortgage is paid up and you’re now heading into retirement. Many of the large expenses you spend your adult life covering, like car and bond repayments, are now behind you so it may seem like an unnecessary expense to carry on with your life insurance. However, there are several reasons why you should consider holding on to it.
While unpleasant to think about, dying is an expensive business. When it comes to burial and funeral, costs add up quickly and the last thing you’ll want to do is put your loved ones through unnecessary financial burden, especially when they’re already having to deal with the emotional hardship of your loss. Your life insurance policy can help to cover the expenses, ensuring that those you love the most are able to give you the send-off you deserve, without putting themselves in an uncomfortable financial situation.
Whether you have a young family or you are older and headed toward retirement, there is always some bill that needs settling. While at this stage of your life, you may not have too many major debts, the small debts can add up. This is when having life insurance cover can make all the difference. Leaving your spouse with the responsibility of paying off debt, especially if there isn’t a steady monthly income, can only put them under further strain.
As you get older, there can often be an increase in medical expenses especially if your life is ended due to a prolonged illness.Your life insurance cover will be a welcome source of income for those left behind to pay your medical bills. The lump sum provided by your life insurance policy can go towards settling any debt, helping to lessen the financial burden felt by those left behind.
When you pass away, the retirement income benefits you and your spouse have become accustomed to may be affected. This may mean that your partner will receive less financial assistance each month and will have to adjust their lifestyle. Should you have a life insurance policy, it can offer a means of income that makes up for the missing finances. With the correct planning, you can ensure that your spouse is able to avoid any massive lifestyle changes brought on by a lack of financial security.
For some, the thought of leaving funds to a specific charity or worthy organisation is very important. It may be difficult to fulfil this desire, especially when the distribution of your assets and wealth needs to be stretched thinly in order to accommodate the numerous areas that require funds after you pass away. The money your life insurance policy offers can be the perfect way to help you satisfy all of your financial duties, as well as a few of your last wishes.
Each person’s financial situation is unique, so when it comes to deciding whether or not to keep your life insurance cover as you enter into retirement, there are many factors to consider. Don’t be too quick to cancel your policy – consider all your options and make a decision based on what would work best for you and those you leave behind.