Do retirees need life insurance?
If you have retired, then your mortgage is probably paid off, and your kids have probably moved out. At this point, you may assume that you no longer need your life insurance policy. However, before you cancel your coverage, consider these reasons why many retirees actually need life insurance.
- It Provides a Source of Supplemental Income
When you retire, there’s always a risk of you outliving your assets. However, if you have permanent life insurance, then you can rely on your policy as a source of supplemental income. When properly structured, your policy can provide you with an income through policy loans and withdrawals.
- It Protects Against the Risk of Outliving Your Assets
When correctly handled, your life insurance can provide a supplemental income for you during retirement. If you rely on investments as your main source of retirement income, then having a permanent life insurance policy to draw from can take some of the pressure off your investments when the market slows down. Through policy loans and withdrawals, your policy can become a great financial tool that ensures that you have the assets you need during your retirement years.
- It Helps to Maximize Your Pension
If you have a pension to rely on, you will have to decide between taking a higher, single life distribution or accepting a lower amount that will provide for a surviving spouse should you pass. However, if you have permanent life insurance, then your policy can supplement a surviving spouse’s income. This will allow you to enjoy the higher, single life distribution without uncertainty regarding a surviving spouse’s income.
This is why many retirees need to maintain their life insurance coverage. Do you have additional questions regarding your life insurance needs? If so, then contact the experts at Udell Family Insurance. We are ready to assist you with all your life insurance needs today.