Do You Need Life Insurance After You Retire?

fortpitt in Retirement Planning 28 September, 2022

Many individuals have life insurance to provide for their families after their death. If you are retired or considering retirement, you may wonder whether you still need a life insurance policy.

This guide covers the factors to consider and how you could benefit from life insurance after you retire.

How Life Insurance Fits In

Life insurance helps a household manage financially after a primary wage earner passes away. If you had life insurance through your employer, you might consider picking up a new plan for your retirement. Or, if you have whole life insurance, you may be debating canceling it.

Consider these questions to decide if you could benefit from life insurance:

Do You Still Earn Outside Income?

Most people have life insurance to replace their wages if they pass away while working. If you can retire without working, you probably don’t need life insurance because there is no income to replace. However, there are other reasons to have life insurance, including:

  • Replacing your pension: In many cases, pensions end once the recipient dies. Life insurance may benefit your spouse, especially if they have not retired yet.
  • Providing an inheritance: Life insurance guarantees your heirs receive tax-free inheritance money. It also allows you to spend your money without worrying about how much they will receive once you pass away.
  • Covering funeral costs: A funeral can be expensive, and a life insurance plan can help your family afford it.

Are You in Debt?

If you are in debt, whether you’re paying your mortgage or signed on with school loans for your relatives, life insurance may be a good idea. That way, your family can pay for your debts.

Also, having debts or loans with a co-signer means the other party will need to pay them back alone. Life insurance can assist them with accomplishing this task.

Is Your Household Self-Sufficient?

Life insurance is helpful if you have kids living at home or with special needs. It can also assist your spouse. However, if your adult children and spouse are self-sufficient, you may choose to continue without life insurance.

Would It Help Your Estate?

Life insurance can go toward your estate taxes and business debt, relieving your family or partners of the responsibility. Or, your business lender may require you to have life insurance to ensure you pay them back.

Life insurance can also cover the tax bills for inherited retirement accounts.

Talk to a Financial Advisor

At Fort Pitt Capital Group, we can assist with making decisions concerning life insurance and retirement. Our financial advisors will help you assess your situation and ensure your family will be taken care of.

View our individual services page today to learn more about how we can assist you.

Talk to a Financial Advisor

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