What are the reasons for having a life Insurance even after you retire?

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 reasons behind why you need life insurance even after your retirement:

1. You’re the main support of your family still now - As per the report provided by LIMRA Secure Retirement Institute, parents above the age of 55 are still taking care of their children, the number exceeds for at least 63%. 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. You can arrange this facility by funding a special care trust with your life insurance policy. 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, it can replace the lost pension income by generating a steady income resource.

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. Life insurance can make sure that these debts are paid off at the debtor’s death.

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. A small premium for life insurance can generate money at death to accomplish financial goals. 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, cash value life insurance could be helpful as a backup resource if something goes wrong with your portfolio value. 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. Any age group can apply for it, starting from the 20s to 60s. 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.

Read on: Term Life Insurance vs. Whole Life Insurance