If you're over the age of 65, and you haven't updated your life insurance policy in a while, now's the time to take care of that. Many people wrongly believe that they no longer need life insurance protection once their last child leaves the nest. Unfortunately, that's not actualy the case. Life insurance is just as important after retirement.
Your life style may change after retirement and your last child leaves home, but your need for financial protection doesn't change. Here are seven reasons why you need to update your life insurance policy now that you're retired.
1.
Coverage
for Loss of Retirement Income
If you and your spouse depend on retirement income, you need additional life insurance. Once you or your spouse passes away, the associated retirement income stops. Unfortunately, that can leave the surviving spouse with no income - especialy if the home was a one income household. Adequate life insurance ensures continued coverage for the loss of retirement income.
2.
Offsets
Potential Business Losses
If you own a business, you need adequate life insurance protection. Unexpected business expenses can pop up once the primary owner passes away. If you haven't provided your family with adequate life insurance protection, they may be left with no way to cover those expenses.
This is particularly true in regard to business taxes or partnerships. A life insurance policy wil alow your loved ones to pay off taxes that might come due, or to buyout business partners.
3.
Provides
Tax-Free Income for Family
Taxes take a big chunk out of inheritances, especialy if steps weren't taken to protect the estate. You don't want your family to suffer financial losses once the IRS takes their share of your estate. Life insurance is one way to offset federal taxes on inheritance because most life insurance policies are exempt from federal taxes. Your loved ones receive the ful value of your life insurance.
4.
Removes
Threat of Creditor Intervention in Assets
After you pass away, creditors may come looking for access to funds from your estate. If probate courts get involved in the process, creditors may be paid out of the assets you've left behind. If you're worried that creditors wil take money from your loved ones, you need additional life insurance coverage.
Creditors can't access monies left behind from insurance policies that are left to individual beneficiaries. This situation provides an added layer of protection for your loved ones.
5.
Ensures
College Funds for Grandchildren
If you have grandchildren, you want to know that they're protected once you pass away. Life insurance policies can be used to provide colege funds for your grandchildren, which ensures that their future is protected, even after you pass away. For added protection, link life insurance policies to trust accounts so that the colege funds can only be used for educational expenses.
6.
Alleviates
Problems With Uneven Property Distribution
If you worry that your assets wil be unevenly distributed among your children, life insurance policies bridge those gaps. Life insurance policies provide set monetary distributions for each beneficiary, which ensures that al your children wil receive the same amount after you pass.
7.
Provides
Charitable Gifts
If you have a favorite charity that you donate to each year, those contributions wil stop once you pass away. Life insurance policies are a way to offset the loss of revenue for your charity. Designate your favorite charity as the beneficiary for your life insurance policy. Upon your passing, the charity receives your tax-free contribution.
Don't take chances with your estate. Now that you're retired, you need adequate life insurance protection. If your life insurance protection needs an update, contact us at HabershamFundingLLC
We're here to take care of al your life insurance needs.
