Monday, July 15, 2013

Do Retirees Need Life Insurance?

Do Retirees Need Life Insurance?

“Conventional wisdom” seems to overwhelmingly support the view that it would be a terrible financial
move for a retiree to buy or continue to own his/her existing life insurance. But is this conventional wisdom a savvy move in YOUR particular situation? Obviously, common sense would dictate that the answer to this question should – just as in any other realm of retirement planning – depend on your particular needs, rather than so-called conventional wisdom.

Income Replacement

Traditionally, financial advisors have recommended life insurance as a means to replace the income of a breadwinner in the event of sudden death until dependents – usually minor children – are able to financially fend for themselves. If this is your main focus and the reason you bought life insurance in the first place, it would only make sense that whenever that “risk” no longer exists, you’d have no need for that life insurance coverage. Why pay for something you don’t need? This, by the way, is the reasoning – and justification – behind the school of thought that retirees do not need life insurance. But does it always make sense?

Financial Inheritance/Legacy

Not everyone purchases life insurance solely for the purpose of replacing income. In certain instances, a retiree may want to leave behind a specific amount of financial inheritance to loved ones beyond what would be left of their nest eggs, if any. In such a case, life insurance could become an excellent tool for providing the desired amount – for virtually pennies on the dollar. 

Of course, deciding whether or not you might need life insurance as a retiree requires careful planning and consultation with a savvy financial advisor – whom I’m guessing has no preconceived stance on this issue, one way or the other, so that you can expect an unbiased, realistic, and factual assessment from them in order to make a sound financial move. 

In the interest of fairness and full disclosure, I must mention that when it comes to this particular subject, I am not a straight yes-or-no vote. Instead, I am 100 percent in the corner of common sense and personal case-by-case consideration.

It’s your financial future, no one else’s. Be sure to get the professional advice that will help you protect YOUR money from unforeseen challenges. Call us today at 877.656.9111 or visit us on the Web to schedule your no-strings-attached consultation!

No comments:

Post a Comment

Chime in with your comments or questions: