Are you a working mother or father? Do you have children, a spouse or even relatives who rely on you for emotional and financial support? If so, you may already know that investing in a good life insurance policy is necessary to ensure those individuals are taken care of if fate decides your journey in this life has come to an end.
But what about policyholders whose families are grown and no longer require your financial support? Is life insurance still a useful investment?
Today, we aim to answer a somewhat controversial question in our industry: Do retired seniors need life insurance?
In a recent article, we mentioned how it could be a wise choice to drop your life insurance policy after you've reached retirement due to insurance rates that climb as you grow older. At the same time, your need for life insurance inevitably decreases since most of the family members you once financially supported are now able to support themselves. Taking these things into consideration, life insurance may not be as necessary as it was when you were working and supporting a family. There are some exceptions to this rule, however.
Families are not as simple as they once were. Not only is the human mortality rate on the rise, many people are also waiting until later to have children. In some cases, a single person may have had children earlier in life, divorced, remarried and had more children later on in life. Whatever the special circumstances may be, maintaining a life insurance policy can ensure that your extended or blended family is taken care of if you pass too soon.
Depending on how your finances have been managed throughout your lifetime, your sudden death could leave unresolved debt in its wake. Some examples of common debt that can follow you to your grave include a home mortgage, car payments and even medical bills. If your bank account doesn't hold enough funds to cover these bills, collectors may try to coax the remaining debt from living family members. To prevent this from happening, hold onto your life insurance; doing so will ensure that these expenses are paid upon your exit from this world.
Just because you no longer have a family to financially support doesn't mean that your passing can't bring certain financial inconveniences upon your family. For instance, have you considered how your funeral expenses - the casket, flowers, service, etc. - will be paid? Instead of leaving this financial burden on a family member, your life insurance policy can cover these costs.
To learn more about life insurance, visit our list of helpful articles here. If you have any questions regarding your specific policy or situation, please reach out to us using any of the contact information listed here. We look forward to speaking with you.
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Term Life Insurance products are offered through TMFS Insurance Agency LLC, a separate company, affiliated with Financial Engines Advisors, L.L.C. (FEA), in states where licensed. TMFS Insurance Agency, LLC is under common ownership with FEA. Each entity is its own separate entity that provides services for its client independent from the other.