Do You Need Life Insurance After 60? Your Most Important Questions Answered
If you’re already retired, and your kids all have jobs, your home’s mortgage is taken care of, and you don’t have any substantial expenses, then you may be thinking that you no longer need life insurance. But although this is correct for the most part, there is still some value to life insurance which you don’t know. Life insurance can generally replace income lost due to the loss of a husband or wife. If you are no longer working, then you cannot replace lost income – hence the importance of life insurance. But the question of the day is: do you still need life insurance after 60? Let’s find out.
Do you still have debts? Are you still working?
If you are already a retiree but you are still paying off debts or a large loan (such as from a business venture which has gone under or a real estate arrangement), then you may want to get life insurance, particularly a guaranteed level premium, term life insurance. But the point, even while getting life insurance, is to make sure that you don’t end up ‘over-insuring’ yourself. You can, for instance, minimize the cost of your premiums by getting a term life insurance policy which will expire as soon as your debt payments end. This way, you can get just the right amount of coverage to help you get rid of that loan or debt.
Also, term life insurance at 60 and above may make complete sense if you are still working even after you reach retirement age, even if you only work part-time. Life insurance can help supplement whatever savings you have, and it can also protect your wife or husband from the loss of your earnings when you pass on. Of course, it will also depend on your income and how much savings you have, especially if you don’t have enough savings to augment your income loss.
Do you have a child who is disabled?
If you have a child who has a disability, then you may want to consider life insurance. Many parents who have disabled children who need continuous support in the form of assisted living or medical care can benefit from life insurance, particularly cash value life insurance. The coverage of your life insurance should be enough to pay for all the projected or potential expenses of your child. Some experts would recommend getting a universal life or survivorship whole life policy, which is often referred to as a ‘second to die’ policy, which can pay out to the heirs or descendants only when both of their parents pass on.
Do you want to take care of planning for your estate?
The payout from a cash value or permanent life insurance policy may also be a good source of immediate funds for your descendants. If your heirs have liquidity coming from your life insurance proceeds, they can pay for the expenses of the funeral as well as take care of state and federal estate or inheritance taxes. This way, they don’t have to sell the family’s assets (such as family property, jewelry, stocks, and so on) to take care of such expenses.