Happy married couple smiling together outdoors

6 Reasons for Life Insurance When You Retire

First, the basics. If you still owe someone, or love someone, yes, you need life insurance.

Now, let’s dig a little deeper and look at the other reasons you may still need life insurance after 65.

1. You’re still the “Bank of You.” 63% of parents over 55 are still supporting their children and or grandchildren, according to LIMRA Secure Retirement Institute. What happens if you are no longer around to provide that support? Who will your children turn to for financial help? Friends or other family members? Life insurance can provide the funds to maintain this support.

2. You have a special-needs child. If so, you may need to arrange for continued care after you are gone. This can be done by funding a special-needs trust with life insurance to provide the resources necessary to provide the level of care needed for this child.

3. You’re “retired” but still working. What if you’re still earning money that you rely on? You’d need to replace the income, and the only way to do that is with assets at work. If you don’t have the assets, life insurance can create these assets at the time of your death. How much will you need? Use our Life Insurance Needs Calculator to find out.

4. You have a pension that dies with you. If you have a pension with no survivorship option, how do you replace that income stream for your spouse? Once again, life insurance can replace the lost pension income by creating the assets that can be turned into an income stream.

5. You have installment debt. According to LIMRA, retirees age 65-74 who still have installment debt have education debt of an average of $2,300, while 64% of their debt is comprised of vehicle loans. Many retirees still have mortgage debt. Life insurance can make sure these debts are paid off at the debtor’s death.

6. You’d like to leave a legacy. Life insurance is a very efficient tool to use for estate planning and the equalization of assets being left to heirs and for charitable planning. A small premium for life insurance can create the money at death to accomplish these goals.

These are just a few of the reasons why life insurance may be required after you retire. Talk with your agent or advisor to learn more.

Marvin H. Feldman, CLU, ChFC, RFC, President and CEO of Life Happens

by Marvin H. Feldman

Marvin H. Feldman, CLU, ChFC, RFC, is president of the Feldman Financial Group in Palm Harbor, Fla., and president and CEO of Life Happens. He is a 41-year Million Dollar Round Table member and was the 2002 president. He is a 33-year member of the MDRT Top of the Table and a past Top of the Table chairman. He also is the recipient of the 2011 John Newton Russell award, the highest honor bestowed on an individual by the insurance industry.

  1. Or, how about this one? You were smart enough to buy life insurance while you were young and now you are enjoying a tax-free income stream in retirement from the cash value of your policy.

  2. It is very important to secure life by insurance, lots of benefits of it and help us till the death. The idea you are sharing with us is very beneficial if anyone starts going for insurance, this helps him why it is important.

  3. It is very important to secure life by insurance, lots of benefits of it and help us till the death. The idea you are sharing with us is very beneficial if anyone starts going to for insurance, this helps him why it is important.

  4. These are great reasons to purchase life insurance after one retires. I actually ran into a woman who wanted to purchase more life insurance at age 90. This is why it is wise to consult with an insurance agent on a regular basis. Needs change as we grow older.

Leave a Comment

Start planning your LIFE today Close