What Do I Need To Know About Life Insurance If I’m Retired?

Let’s get one thing out of the way right off of the bat—if you don’t yet have a life insurance policy, you should get one. However, if you are already retired, or about to retire, you probably have a lot of questions about life insurance. Not to worry, life insurance is not as complicated as you think. This article is going to address the three most common life insurance questions we get from retirees.

Do I Need Life Insurance Once I Retire?
Being retired is not synonymous with being financially sound. Consider all the different factors that could potentially affect your financial situation after you retire. Are a lot of your funds tied up in investments? What if the stock market tanks? Maybe you get sick and need to pay for medical bills. Perhaps your child gets married and wants a big wedding. There are myriad of ways your finances can be drained after retiring, which is why it’s important to financially protect yourself, and your loved ones, with proper insurance policies.

Unfortunately, life insurance tends to be the one policy that people overlook when getting insurance. Remember, a life insurance policy isn’t there to help you, it exists to help your loved ones after you are gone. If you have loved ones that you want to take care of after you are gone, you need a life insurance policy, even after you retire.

If I Am Retired Without A Life Insurance Policy Is It Too Late To Get One?
Of course it does! Of course your rates are going to be higher than if you had invested in a policy at 20, but just because you’re older does not mean that it’s impossible to get insured.

Why would you bother taking out a life insurance policy at that age? If you’re alone with no family it might not make it difference. However, if you have a spouse or a family member you’d like to take care after you go, a life insurance policy is one of the best ways to do that.

Imagine a scenario where, to get the retirement you want, you have to take a complete pay out of your pension, with no survivorship provision. What happens if you die before your spouse? Your spouse will be left with no financial help. With the right life insurance policy, even one that you don’t get until after you are retired, your spouse can be financially safe regardless of any unforeseen events.

Do I Need More Life Insurance After I Retire?
The short answer: maybe. If you have invested in life insurance early with the intention of replacing income, and have a sound investment portfolio you’ll likely be fine with what you have.

However, depending on the type of investments you have made you made have to pay a substantial amount of taxes after you die. That can seriously gut whatever money you were hoping to pass on to your loved ones. Take the time to research what kind of tax situation your investments will find themselves in after you pass. It’s important to have a life insurance policy that matches the amount of financial exposure your finances will be under after you death.

Life insurance can be a tricky thing, but it is incredibly important if you have any loved ones you want to make sure are taken care of after you go. Take the time to do your research and make sure you have the right insurance policy for your situation.

As with any insurance decision, it’s important to speak with an insurance professional before making any major decisions. That staff at TGS Insurance are experts in life insurance and happy to answer any questions that you may have. Visit www.tgsinsurance.com to learn more.