We all have individual opinions about life insurance, but one thing is for sure – it is something that can benefit our loved ones when we pass on. When you really think about it, life insurance isn’t for you – it’s for the people you love, the people you leave behind.
If you’re like most people, you would like to make sure your loved ones are provided for, even when you are gone. Life insurance can provide your family this protection and insure against the financial hardships they might experience when you pass away.
If you are over 50 or retired, do you still need life insurance? While some of us will not need life insurance when we are older, coverage is commonly purchased by people who are in their 50’s and beyond. Here’s what you should consider about life insurance when you are older.
Do you need it?
First, ask yourself this: do you need it? Well, the answer to this is simple: will someone close to you have financial difficulties when you pass away? If the answer to that question is no, then you can probably do away with life insurance. But if you have anyone who relies on you for financial support, and they will likely have a difficult time if you pass away, you should take care of their needs by getting life insurance.
Do you want it?
You may not need life insurance, but you may want it. Think about this way: even if your family has enough money to be taken care of when you pass away, you may want to leave money behind to a charity, your grandchildren, or even your business partners after your passing.
If you are in good health, life insurance can less expensive than saving your own money. You pay a set amount every month, and when you pass away, your policy will pay any individual, organization, estate, or trust that you choose. Most policies allow up to 10 beneficiaries, and their identities are kept confidential, so you won’t have to worry about your family fighting when you are gone.
What is the ideal amount?
Once you have determined that life insurance is a feasible choice, think about the ideal amount of coverage your family would need. How much money do you bring home each month, and how much of that money would they need to pay the bills every month and to continue living their current lifestyle?
Everyone’s financial situation is different. If your spouse also brings home an income, providing enough money to pay off the mortgage might be enough. If you are the primary breadwinner for your family, you might need to replace a few years of income until your spouse can start working again or begin collecting your retirement benefits.
When you can benefit from life insurance
There are some situations where life insurance over the age of 50 provides significant benefits. For example, if you have a pension from your employer, a life insurance policy can be used to maximize the monthly income your pension provides while safeguarding a replacement income for your spouse.
If you have children who are not yet adults, life insurance can secure the cost of their education or provide for them if you are no longer able to. Life insurance can be also used to fund a trust for a special needs child or reduce estate taxes if you own a substantial amount of assets that will result in an estate tax liability when you pass on.
If you are a business owner, it may also be a good idea for you to get life insurance at age 50 and beyond. This coverage can protect your business, employees, and their families in the event of your passing. Business owners can even use life insurance to protect their family from business debts and lenders if they are no longer around to pay the bills.
Image attributed to Pixabay.com