Life insurance retirement plan

Is your coverage fit for retirement?

Our finances are constantly changing. Just think about it — are you in the same position today as when you were 40? Probably not. Now, you could be retired, have fewer expenses or have more. You could have a whole new lifestyle.

That’s why it’s important to make sure your life insurance still fits your needs in retirement. Ask yourself these questions to help get you started:

1. Do you have a spouse who would be unable to pay all the bills or remain in your home without your salary or Social Security?
2. Are your retirement savings insufficient to help support your spouse or family?
3. Are you responsible for a disabled or handicapped loved one who will need ongoing care after you’re gone?
4. Do you own a business or property for which state or federal taxes would be due?
5. Do you have debts, such as a mortgage, credit cards or other loans?
6. Would your loved ones be unable to cover your final expenses, including your funeral and any remaining medical bills?
7. If you have life insurance through your employer, will your coverage terminate once you retire or separate from your employer?

If you answered “yes” to any of the above questions, retirement life insurance might make sense for you. Plus, it can help give you peace of mind knowing your loved ones are financially protected during an already difficult time.

What are your options for life insurance in retirement?

Should you decide to help protect your family’s financial future with a life insurance policy, you have two basic options: term insurance and whole life insurance.

Term life insurance is coverage you keep for a specific amount of time. It can provide a financial safety net for a specified time frame to cover expenses that may occur during that period, such as mortgage payments or college tuition. Once the term is over, you can usually renew your coverage at the end of each term up until you turn a certain age (depending on the insurance policy).

On the other hand, whole life insurance is permanent insurance — it lasts throughout your lifetime as long as you pay the premiums. Plus, whole life insurance builds cash value. This type of insurance policy can provide protection for your ongoing financial obligations. Some term insurance policies offer you the option to convert your coverage to whole life insurance.

Think you’re too old for life insurance?

Frankly, there’s no “magic age” when your need for life insurance suddenly ends.

In mid life, people may have mortgages, credit card balances and other outstanding debts. Some may even be raising grandchildren. For them, life insurance can help secure their family’s lifestyle and financial future, in addition to covering final expenses.

For those recently retired, purchasing a life insurance policy can provide peace of mind knowing his or her loved ones will have enough money to cover their burial expenses and settle any remaining debts.

If you’re unsure about your needs, here’s one thing you can be sure about: You’re never too old to talk with an experienced agent who understands the needs for your stage of life. This can be a loving decision at any age.