Often, people think of life insurance as a way to protect loved ones in case of an unexpected death while they’re still working. It acts as a safeguard for income that your loved ones depend on. Because of this, life insurance has a reputation of being superfluous once you retire. In truth, there are several reasons why someone might need a Massachusetts life insurance policy in retirement – here are the top six:
To support your dependents.
Even in retirement, you may look like a bank to your children and grandchildren. If you are often the source of spending money for others, you may want to invest in a life insurance policy to ensure that their lifestyles aren’t forced to change upon your passing.
To care for special needs children.
If you have children or other dependents with special needs, a life insurance policy can help to ensure that they are taken care of when you’re no longer around. Ask an insurance expert if a special-needs trust is right for your situation – they can be useful in providing care in this unique situation.
To replace necessary income.
In some cases, people work even in retirement. If you work in retirement and depend on the income that you bring home, you may need a life insurance policy to ensure that your spouse doesn’t need to start working (or work more) to replace your income.
To replace a pension.
Pensions can be a great source of extra income, but sometimes they don’t have a survivorship option. Just as you would use a life insurance policy to replace income from a job, you may use a life insurance policy to replace pension income that you and your dependents have come to need.
To pay off residual debt.
Many retirees still have debts that need to be paid. If you retire with residual student loans, car loans, mortgages, credit card debts, or another type of debt, you should consider a life insurance policy to cover what you owe. While debts cannot be passed down to children, those that you owe can collect out of your estate until all debts are satisfied. A small insurance policy can ensure that this does not need to occur.
To leave a legacy.
If you would like to leave an inheritance to your dependents or a gift to your favorite charity upon your passing, you can do so with a life insurance policy. A small premium can help to ensure that there is money in the event of your death to give to children or grandchildren – in some cases, you can even specify that the money is to be used for educational expenses.
If you’re approaching retirement, consider these six reasons for keeping your life insurance policy. If you have any additional questions about your policy, speak to a Massachusetts life insurance expert here at Vargas and Vargas Insurance Agency. One quick call to 617-298-0655 will put you in contact with someone who can answer your questions, get you a quote, and much more.
