Retirement causes a lot of individuals to reconsider their expenses. Living on a fixed income can present you with serious challenges and cause you to re-evaluate paying for additional costs such as life insurance. But before you decide you no longer need life insurance, take some time to consider these four things:
You may leave behind debt.
It’s nice to have all your debts paid off before retirement. Unfortunately, that is not a reality for most people. If you are going into retirement with debt from a mortgage, credit cards or other life expenses, it may be a good idea to keep your life insurance—especially if you’re leaving behind a significant other who would then be responsible for your debt.
You still have dependents who need financial assistance.
Life insurance may be a good idea for people who could potentially leave behind loved ones who are still dependent on them for financial stability. This could be a spouse, parents, siblings or anyone you are still supporting in your retirement. It has also become more common for parents to help their children financially well into their adulthood. You wouldn’t want the people you care about most to be without recourse in the event of your passing.
You want to leave behind a legacy.
Some people want to leave behind a lasting impression well after they’re gone. If there is a charity, community or special cause you want to help after you’ve passed, then life insurance could be a way for you to solidify your legacy. This could be especially helpful if you have reached a point where you’ve spent all your assets.
You want liquidity for your estate.
Sometimes what you want to leave behind for your loved ones is not money but property, family heirlooms or other nonliquid items. Things like outstanding debts, health care expenses or tax bills may, however, force your loved ones to sell these assets to cover those costs. Life insurance provides cash and liquidity to help cover these expenses so your family doesn’t have to sell assets that have sentimental value.
Having life insurance after you retire may seem like an unnecessary expense that can be eliminated. But if you leave behind debts, want to establish a legacy or still have dependents, life insurance can be a good thing to have.
Ready to learn more about life insurance? Contact us at Baacke Financial Services. We can help you evaluate your objectives and needs, and then develop a strategy. Let’s connect soon and start the conversation.
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