This month is Life Insurance Awareness month. Believe it or not, after retirement a life insurance policy is just as important as it was before retirement. So, all month long we’re going to share important information about life insurance that’s relevant to those of you who’ve retired or are getting ready to. Today’s post discusses five important reasons you need to keep life insurance after turning 60.
To create a legacy. There are so many options when it comes to leaving a legacy. Yours might be made up of your creative endeavors, your family lineage or the businesses you’ve built. But if your legacy doesn’t quite feel complete, a life insurance policy can help you fill in the gaps. It can be used to create a scholarship fund, to make a charitable contribution or to pay for a dedicated bench at your local park.
To support your surviving spouse or disabled child. Even if you’ve been careful with your retirement saving and postretirement spending, your spouse could still be in a tough spot upon your death. A life insurance policy can ensure that they have enough to live out their retirement in comfort while still passing some wealth on to beneficiaries. If you have a disabled child, a life insurance death benefit will be instrumental in providing him or her with continued care.
To give your kids and grandkids a head start. It’s natural to want your children and grandchildren to have an easier life than you had. With a life insurance death benefit, you have an affordable way to make sure your children and grandchildren can get a head start in life. If you think they might be too young or inexperienced to use that head start effectively, consider setting up a trust with some oversight into how much money they’re allowed at one time.
To pay off debt. Unfortunately, not everyone gets out of debt before retiring. If you’ve got lingering debt, a life insurance policy can ensure that it doesn’t come out of your estate or out of your surviving spouse’s pocket after you pass on.
To help pay for increased medical expenses. After age 60, healthcare expenses can easily hit the six-figure mark for retirees. When you’re on a fixed income, that’s not easy to pay for but with a life insurance policy cash value to borrow from, those healthcare costs can be more easily accommodated.
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