Below, we answer your questions about getting
life insurance after you have retired.
Q: Do I Need Life Insurance Once I Retire?
A: Although you have retired, it doesn’t mean that your financial future
is entirely secure. There are many different things that can happen during
your retirement. Sometimes, people retire only to find that they have
done so too soon, while others might have investments that don’t
pan-out the way they thought they would. When these things occur after
retirement, you don’t have very much time to rebuild your savings.
There is also the matter of your burial expenses when you die, as well
as expenses for dependents and other family members who rely on your income.
If you have young children living at home or an elderly parent you provide
financial support for, you should consider getting a life insurance policy.
Just because you have retired doesn’t mean that all of your financial
obligations will go away.
Q: How Much Life Insurance Coverage Will I Need Now That I’m Retired?
A: If you are purchasing life insurance to replace income and you have built
up investments for your dependents, you might not need very much coverage.
However, there might be state or federal inheritance tax that will need
to be paid after your death. In addition to these expenses, there are
also probate and administration costs that you will need to consider as
well. If you’re a home owner, there will also be final debts or
mortgage payments that need to be handled. If you think your loved ones
will be left financially vulnerable when you die, you will need to purchase
a higher amount of coverage for your life insurance policy.
Q: Can I Still Buy a Life Insurance Policy After I Have Retired?
A: You can still purchase a life insurance policy after your retirement. Sometimes
you might find out about estate taxes that you are not exempt from and
may need to pay. That’s where your life insurance policy comes in
to pick up these expenses. Another reason to get life insurance is if
you have taken a 100% pay-out on your pension without a survivorship provision.
If you pass away, your spouse won’t get any money. Having a life
insurance policy will ensure that your spouse has financial security.
Q: What Else Do I Need to Know About Life Insurance & Retirement?
A: A life insurance policy can be beneficial if you have a terminal illness
and you do not have enough money to pay for your medical expenses. Under
an accelerated death benefit provision, you can pull out money from your
policy to cover the cost of your illness and avoid having to file for
More importantly, having a life insurance policy can be a good way to save
and invest your money with minimal risk.
Are you interested in purchasing a life insurance policy for you and your family? Contact our Atlanta team of insurance administrators
to talk about how we can help you today.