Should those aged 50+ continue to pay for life insurance?
While most Americans understand the value of having life insurance, when your children have moved out and you have paid off all your major financial obligations, life insurance coverage may no longer seem necessary. However, before you decide to cancel your policy, there are some things you should consider. Here’s why life insurance may still be worth having.
Regardless of how old you are, the cost of your funeral, burial, and other expenses related to your death can add up very quickly. In fact, death expenses can easily exceed $10,000 and this number is steadily increasing every year. Rather than leaving your loved ones to shoulder this financial burden on their own, you should keep your life insurance policy to cover the cost of your death expenses.
Estate taxes are another financial concern for those over the age of 50. If you are subject to an estate tax at the time of your death, then this tax could value up to 50% of your descendants’ assets. Unfortunately, loved ones are often forced to liquidate their personal assets in an attempt to pay off this sum. If you want to help your loved ones preserve their assets, then you should keep your life insurance coverage. Your death benefit will help them cover the cost of your estate tax.
When a retiree dies, their pension is generally cancelled or significantly reduced. This could leave a surviving spouse without a sustainable means of income. Luckily, if you have the right life insurance in place, then you can replace your lost pension or retirement income. This, in turn, will ensure that your spouse can continue to live comfortably after your death.
These are some of the reasons why life insurance may be worth it for those over the age of 50. Do you have additional questions regarding your life insurance? Then turn to the experts at Udell Family insurance. Our dedicated team is ready to assist you with all your coverage needs. Contact us to get started today.