The need for life insurance is most apparent when your family is young and your financial obligations are at their highest. Once your family is grown and out of the house, this need may change, but it won’t go away.
Life insurance can play an important role in any financial plan – at any age. After age 50, you may not need as much coverage as you once did, but there are many reasons to have this valuable protection just the same.
If you’re retired and your spouse depends on your pension income, it can help replace benefits that may be lost if you pass away. It can also help your family with bills you leave behind ... and allow you to leave an inheritance to those who mean the most to you.
Not sure you need life insurance? Here are a few reasons to consider it:
Outstanding Financial Obligations
Life insurance can help with the bills you leave behind... and remove the financial burden from your spouse and children. Consider your credit card debts, personal loan balances, medical expenses and other financial obligations.
The average funeral and burial is now more than $8,343, according to the National Funeral Directors Association. Unless you make other arrangements, loved ones may have to reach into their own pockets to pay this bill.
Life insurance may be a smart choice if you have a sizeable estate... and your heirs might not have the money needed to pay estate taxes. Rather than liquidate the assets you are passing on to them, such as real estate, jewelry, stocks, they can use policy proceeds to pay taxes.
A Legacy Left Behind
Life insurance is a reliable way to leave a gift for someone special. Proceeds can help a child with college expenses or provide a down payment on a first home. In general, life insurance proceeds are free from federal income tax. So your beneficiaries will benefit from the full amount of your policy.
Reduced, or Eliminated, Pension Benefits
If you and your spouse count on a pension to help with living expenses, it’s important to consider how your death would impact payment of that pension. It may continue to be paid in full to a surviving spouse ... or it may be reduced or, even, stop completely. It all depends on the payment option selected by your spouse. If pension payments haven’t yet started, you may have to wait for them to begin.
Changing Social Security Payment
There are many rules that affect Social Security payments. One to consider is this: if both you and your spouse are collecting retirement benefits, that amount may decrease at the death of one or the other. If you count on the full amount to help with living expenses, you may want to consider life insurance to make up the difference.
Life insurance should remain an integral part of your financial future. Even at age 50, you and your loved ones could still reap the benefits of an Individual Term Life policy. As an NASW member, you have access to exclusive discounted rates on term life insurance. Start protecting your family’s future.
To learn more about your NASW Endorsed life insurance options, visit us online.