Do I Need Life Insurance Before I Retire?

Life insurance is a type of insurance that many people tend to see as more optional. As such, a lot of people actually forego purchasing a life insurance policy for a long time. That’s actually the worst way to go about life insurance. Let’s take a closer look at why it’s important to purchase a life insurance policy early, and how a good one can actually provide a lot of benefits in your retirement.

The price of a life insurance policy is predicated on a myriad of risk factors designed to predict how healthy you are and how likely it is that you will die in the near future. Knowing that, it makes sense that the younger (and healthier) you are, the cheaper your life insurance policy is going to be.

Once people have reached their 60’s and are looking to retire, they have been paying into a life insurance policy for 30 years. Back then, it probably made a lot of sense to have a life insurance policy. After all, not many 30 year olds have enough savings to cover extenuating circumstances and need sufficient income protection for their loved ones.

Those circumstances change as you get older. By the time you’re ready to retire you might have ample savings. With a lot of money in the bank you may find yourself wondering if life insurance is worth the cost. Check out these three ways that a life insurance policy can help you in your retirement.

If you decide you don’t want the same level of coverage that you had when you were younger, than you can leverage the cash value of your police to help fund your retirement. Many people don’t realize that this is an option.

All you have to do to take advantage of this is pay into your policy while your young, then leverage it through retirement income through withdrawals and policy loans. Depending on the size of your policy, this can be a significant source of income in your later years.

Chronic Illness
Most life insurance policies include a little known clause that allows policyholders to access their death benefits early if they are diagnosed with a chronic illness. This can provide the financial support needed to make those final months more comfortable.

It is worth pointing out that the definition of a chronic illness may differ from provider to provider. In general, as long as you have an annual certification from a medical professional you should be covered. Remember, when in doubt just call your provider directly and ask.

Wealth Transfer
Wealth transfer after death can be incredibly expensive if it’s not set up appropriately. Depending on how much money you are passing on to your heirs, you could end up paying an astronomical amount of taxes. Life insurance is a great way to solve that problem.

As it turns out, life insurance is one of the most affordable and effective ways to transfer wealth after you die. If your policy is set up correctly a significant portion, if not all, of the wealth you are transferring can be done tax free.

Life insurance is important in every stage of life if you have others who rely on you financially. Accidents can happen, and the best thing you can do is be prepared. It’s important to take the time and do your research to find the life insurance policy that is right for you. There are a lot of advantages to a proper life insurance policy, especially in retirement.

To learn more about your current policy, or to inquire about a new one, we encourage you to reach out to TGS Insurance at

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