5 Reasons to keep your life insurance as you head towards retirement

5 Reasons to keep your life insurance as you head towards retirement -
As baby boomers continue to make their way to retirement, many may feel they can eliminating the extra expense life insurance. After all, in many cases children are grown and some of the most important expenses like college may be behind them.
But it doesn, AOT necessarily mean you have to get rid of your life insurance coverage quite so fast. In fact, in many ways that people approach their golden years, they have even more reason to hang on to, or even add to their life insurance protection.

Here are 5 reasons why:
1. Cover final expenses: Although it may seem obvious, many people don, AOT realize how expensive it can be to die ! And while nobody really wants to talk, today, Äîafter factoring in the cost of a casket, headstone, burial place, flowers, transport and real service average cost of a funeral Itself, can run Äîthe in the neighborhood of $ 10,000 or more. This can be a heavy expense to leave to your spouse or other relatives. But, by covering it with life insurance, you won, AOT be leaving them with financial difficulties being.
2. Supplementing or replacing income: If you, Aore married, it, AOS possible that the retirement income benefits you receive and your spouse may end or be greatly reduced when one of you dies. This is true with many types retirement defined benefit plans. If this happens, the survivor may be forced to change their lifestyle a lot, including moving to a different house, and give up various activities.
Having a life insurance policy in place, however, could solve this problem. When you or your spouse, AOS death, the policy, AOS products could be converted into an income stream that could supplement or replace That, AOS lost revenue. By planning ahead, you or your spouse can continue living your current lifestyle.
3. Pay property taxes: Believe it or not, when you die, you may need money to Uncle Sam, and if you have the gift, AOT money appropriated potential debt, your family may be forced to sell assets or family heirlooms, often below the market price, just to come up with the money.
a life insurance policy can provide a way to pay what, AOS due on the inheritance for pennies on the dollar. And, placing the policy in an irrevocable trust, you can preserve the value of the policy in your own name, and in turn, the value of your overall estate, which significantly reduces the amount you need.
4. Equalize an inheritance. Life insurance can also be used to match a legacy to your heirs. When planning the distribution of your estate, you may realize that additional funds are needed. For example, if a business owner has three children, and two will be inheriting from the company, but the third has no interest in the company, life insurance can be used to provide for the third child of an amount equal to the other shares children, AOS now.
5. Support a charity. As people move through life, they can also feel the desire to leave money to a charity or similar organization. Life insurance can provide an ideal mechanism to do so, and a number of tax benefits related to both the donor and the charity. These can include a tax deduction for the donor on premium payments and the receipt of the goods tax free organization.
The Bottom Line
Whatever your age, if you care about someone or something, then it, AOS very possible that the insurance life may be required as part of your overall financial plan. Not everyone needs life insurance, and I suggest reviewing your current financial situation and goals will help you determine if you should consider life insurance for you and your family.