3 Reasons To Maintain Life Insurance After 60
Posted on: 25 February 2019
Many consumers think of life insurance policies as a protective measure. These policies are designed to help provide financial help in the event of your death. As your children grow and you pay off your home and car loans, you might be wondering why you need life insurance.
The fact of the matter is that a life insurance policy is just as important after age 60 as it is when you first began your career.
1. Add Flexibility to Your Estate Plan
Estate planning is a topic that becomes more important as you age. You want to ensure that your surviving family members are cared for after your death, and you want to avoid having the assets you have worked hard to acquire get tied up in probate court. The right life insurance plan can help you add some flexibility to your estate plan.
The funds paid out by a life insurance policy can be used as a gift to your grandchildren to help pay for college. You can also designate that the payout of your life insurance policy go toward paying off inheritance taxes. When the money for these types of things doesn't have to come directly from your estate, you can leave more for your family to enjoy.
2. Supplement Your Retirement Income
Most senior citizens are living on a fixed income. Even if you have planned for retirement successfully, a little extra money each month never hurts. Some life insurance policies offer access to dividends that can become a tax-free source of income.
These dividends can supplement your retirement, IRA, or 401(k) payouts to give you greater financial flexibility as you enjoy your retirement.
3. Provide Loan Collateral
With the average lifespan increasing, more and more senior citizens are finding themselves in need of a loan following their retirement. Whether the loan will be used to purchase a second home or an RV or to make repairs to the primary residence, obtaining a loan on a fixed income can be challenging.
A life insurance policy can be used as collateral to help you acquire the funds you need to enjoy your retirement. You can take on more debt without worrying about being turned down by lenders when you have a life insurance policy to offer up as collateral.
Life insurance policies can do more than just provide money for your family after your death. These policies can be valuable tools in helping you enjoy life more fully after retirement. For more information, contact a local insurance company like Scovotti Insurance.Share