Let me make this straight to you, the truth. If you care for someone, or owe someone, of course, definitely you'll require a life insurance policy.
Now, let’s discuss a little further and sneak out the key :
1. You’re the main support of your family still now - As per the report provided by LIMRA Secure Retirement Institute, . What would be the situation if the parents become unemployed? The answer is very simple. Their family will be ruined to dust. To whom the children will go for any financial help? Life insurance can provide the funds to maintain this support.
2. One of your children is “special” - If you have any child who is mentally or physically challenged, his/her full responsibility rests upon you only. You'll need to make arrangements to take continuous care of him/her after you're gone. . The trust will provide financial support to the children with the necessary care needed.
3. You’re “retired” but still working - What if you’re still working, and the income is needed for your own? If somehow you can't work that much, how will you meet your own necessities? How much will you need? In that case, as an asset you'll require a life insurance policy.
4. You pension plan ends with your death - If you have a pension plan with no survivorship option, it'll not provide any financial help to your spouse after your death? But if you avail life insurance policy after retirement, .
5. You have installment debts - As per LIMRA, people around age 65-74 still have installment debts on their heads like education debt, mortgage debts, credit card debts and many more. .
6. An asset for your heirs - Life insurance can be a very important aspect to be used for estate planning and the distribution of assets. . For an example, life insurance death benefits could be used to pay estate taxes instead of selling assets at an inopportune time.
7. Security from stock market downturns - A sudden stock market crash could affect your investments. So, . It could reduce your steady income and affect your lifestyle.
Some important facts
- A spouse or a dependent can get the pension replacement through a life insurance policy even if he/she is not qualified for survivor benefits.
- A retired person can use cash value policies as protection against retirement plan to meet unexpected costs.
- Buying life insurance policy later in your life will be expensive, but if you already have several existing policies, you may get income flexibility as a part of your total retirement income plan.
So, we have the idea that life insurance is mainly required for the prime family member, whose income is the main source of the family. It's for protecting the spouse and/or kids who depend on the insurer's income. , . But the more you delay to get the policy, the more you’ll lose the benefits while you’re approaching your retirement. So, buckle up and choose a life insurance policy to boost up your retirement days.