Your life insurance needs change as you reach new milestones, but what about retirement? Does the need for life insurance end when you’re no longer working, or do you need life insurance for retirement?
The truth is that there are many reasons to keep a policy into your retirement years. Life insurance during retirement can do a lot — including help yourself, your family and even others. When thinking about whether you need a policy, be sure to weigh these potential benefits.
Keep Your Home in the Family
If you’re among the many retirees with a home mortgage, you may want to keep your life insurance coverage. This will help ensure that your home remains with your family in the event of your death.
Get Help with Daily Expenses if You Become Ill
Did you know that adding a daily living rider to your life insurance policy can provide protection during your life? It allows you to choose to receive a portion of your policy’s death benefit for financial support if you become chronically ill or unable to perform two of five essential tasks of daily living. These tasks include eating, toileting (getting to and from the toilet), transferring (getting into a bed or chair), bathing, dressing and/or continence.¹
Use it to Care for an Elderly Family Member
With life expectancies increasing, you may find yourself caring for an elderly parent or relative during the early years of your retirement. According to the Social Security Administration, “about one out of every three 65-year-olds today will live past age 90, and about one out of seven will live past age 95.” If you’re able to access the cash value of your life insurance policy, you could use that money to help take care of an elderly parent.
Make It Easier to Transition Your Business
If you own a business, keeping it in your family when you’re gone might be very important to you and your loved ones. A life insurance policy can help cover the costs and taxes that come with passing a business to the next generation.
Access Supplemental Income
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.
Give to Your Favorite Charity
If you have a charity that is near and dear to you, your life insurance policy can be one way to ensure that charity receives a larger gift. This is because monthly premiums paid over a long period of time can allow for a greater payout to your beneficiary than you could have donated at any one time while living. You can designate the charity as a beneficiary, and it will receive a payout when you pass.
Ask a Professional About Your Life Insurance Options
Before you decide to make adjustments to your coverage, contact your Farm Bureau agent for guidance in assessing your life insurance needs.
1 Life 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.