Retirement is a time to enjoy the fruits of your labor. After years of working hard, you have finally paid off your house and your children are all grown up and moved out. In this period of life, it can be tempting to believe that you don’t need life insurance anymore. But that’s not necessarily the case. In this article I will outline a few reasons why life insurance is still something to consider even after your house is paid off and your kids are grown up.
Life Insurance Can Be Used for More Than Just Death Benefits:
When most people think of life insurance, they think of death benefits—the money that goes to a beneficiary upon the policyholder’s passing away. While death benefits are an important part of any life insurance policy, they’re not the only consideration. Some life insurance products also provide living benefits such as dividends and cash value accumulation. In some cases these additional benefits can provide avenues for financial support should the insured experience a financial emergency during the life of the policy.
Life Insurance Is Often Tax-Advantaged:
In addition to providing coverage for both death and living benefits, many life insurance policies offer tax advantages too. Some policies accumulate cash value through tax-deferred growth which means that taxes on this growth are deferred until withdrawal from the policy at a later date. This can be very helpful in retirement when income sources may be limited and taxes can quickly add up on lifetime gains and investment profits. Additionally, some policies allow for tax-free withdrawals through loans or withdrawals from the policy itself which can provide additional flexibility in retirement planning.
Life Insurance Can Be Used as Part of Estate Planning:
Estate planning is one area where life insurance plays an essential role—regardless of whether or not your house has been paid off or if your children have moved out already or not yet left home at all! When used correctly as part of an estate plan, life insurance can provide funds needed to pay taxes on large estates while also helping ensure that heirs receive their inheritance without having to wait for it all to pass through probate court proceedings first.
Even after your house is paid off and your children have moved out, there are plenty of reasons why you should still consider getting a life insurance policy. As a qualified financial expert, I can answer any questions you may have about how best to use these products in order to maximize the benefit they can provide in retirement while minimizing any potential costs associated with them over time. If you haven’t already done so, click here to set up a time to chat with me about your estate planning needs.