Is Life Insurance Necessary in Retirement?
Life insurance is always a tricky subject, and that goes for both young workers whose spouses and families rely on their income, as well as retired individuals collecting social security or other retirement benefits. There are many reasons to invest in life insurance, though the most common reason for retirees is to pay for funeral expenses. Costs like these are continually rising year after year, even for the most modest of services, and no one wants to stick their family with a substantial bill that they can’t handle. However, many people are still unsure about whether or not life insurance is right for them.
The decision of whether or not to buy a life insurance policy may depend in large part upon the size of the individual’s estate. If there is just enough money in a retiree’s accounts to cover final expenses, then there probably isn’t enough. Unfortunately, estimates for these kinds of things typically fail to account for everything. Also, most retirees would feel better about their estate passing on to their descendants rather than being used up right away. On the other hand, retirees with large estates and significant assets may not have to worry about this. In fact, life insurance may be an unnecessary expense for some.
Retirees who are still paying off large debts may want to look into life insurance plans in more detail. In many cases, when an individual passes on, his or her personal debts are considered null and void-however, this does not apply in all cases. Any debt that is attached to a contract with a cosigner will be passed on to the cosigner after the primary debt holder’s passing. Likewise, retired couples who are paying off home mortgages can protect one another from unmanageable payments by investing in a life insurance policy to fall back on.
Another great reason for retirees to invest in life insurance plans may be the nature of their particular pensions. Many standard pensions, for example, only pay out benefits for as long as the beneficiary is alive. Under this arrangement, should a retiree pass on, his or her spouse would not continue to receive any income from this pension. This is another important consideration for married couples. If pension income is eliminated, will the surviving spouse be able to live comfortably? If not, life insurance could be the safety net that married retirees need to live with a sense of security.
There are many different kinds of life insurance available for those who decide that a policy is right for their particular situations. For everything from term life insurance to mortgage protection, interested retirees can seek life cover on-line to protect their assets and their families in the years to come. The question of whether or not life insurance is necessary in retirement can only be answered by the individual. Circumstances rule this decision, so all retirees should look carefully at their own circumstances to determine whether they can benefit from a life insurance plan.