Your life insurance needs change as you experience different milestones — buying a house, starting a family, getting married or divorced, and changing jobs — and now you’re wondering about keeping life insurance after retirement. We’ve put together some life insurance uses to consider.
Life Insurance During Retirement:
If you’re retired, but are among the many retiring with a mortgage, you will likely want to keep your life insurance coverage. Besides ensuring your home remains with your family, we’ve compiled additional reasons to consider having life insurance during retirement.
Did you know a daily living rider can provide protection while you’re still living? With a daily living rider, you can choose to receive a portion of your policy’s death benefit as a way to provide some financial support if you become chronically ill or are unable to perform two of five essential tasks of daily living — eating, toileting, transferring, bathing, dressing and/or continence.¹
Caring for an Elderly Family Member:
With life expectancies increasing, you may find yourself caring for an elderly parent or relative during retirement. According to the Social Security Administration, about “one out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95.” If you are able to access the cash value of your life insurance policy, you could use that money to help take care of your elderly relative.
Transitioning a Business:
If you own a business, keeping it in your family when you’re gone is likely very important to you. A life insurance policy can help cover the costs and taxes associated with passing the business on.
Certain types of life insurance policies build cash value over time and can be used as a form of supplemental income in retirement — potentially tax free.
If you have a charity that is near and dear to your heart, your life insurance policy may be one way to ensure that charity receives a larger gift. You can designate the charity as a beneficiary upon your passing.
For more information check out: Unexpected Uses for Life Insurance
Before you decide to make adjustment to your coverage, it’s a good idea to schedule a SuperCheck® with your Farm Bureau agent. Your Farm Bureau agent can help you assess your coverage needs.
¹Life insurance and its riders can provide some financial protection in your later years, but should not be viewed as a replacement for long-term care or disability income insurance.