Many people purchase life insurance to protect a home or new family.
Many people purchase life insurance to protect a home or new family. They also discover that their needs change once they approach retirement. Whether you double down or drop coverage, retirement years are excellent for reexamining life insurance. This article offers a few options regarding life insurance and retirement.
Why Life Insurance is Critical to Have
Here are several reasons why you should consider life insurance, especially if you are 60+ of age:
- Protecting the income you bring into the household with life insurance is wise if you and your spouse are still working.
- Permanent life insurance benefits individuals with estates that exceed $5.4 million to help reduce estate taxes.
- If you want to care for your kids or other family members, consider converting a term policy into a permanent one.
- Some individuals fund their retirement using the cash value from their permanent life insurance policy.
Purchasing Life Insurance When You are Older
Remember, purchasing life insurance after the age of 40 might prove to be a challenge. That is why it’s advisable that people buy life insurance at a young age because the rates tend to increase as you become older. So, signing up for a shorter-term policy might be possible, especially if you have excellent health. If you don’t have perfect health, there is a thing as guaranteed issue life insurance where there will be limited benefits. Rather than $500,000 worth of coverage, you would only be accountable for paying off $20,000 worth of coverage.
Renewing Your Policy, Dropping It, or Extending It
Most term life insurance policies allow a renewal at the end of the term, despite your health condition. However, there may be a potential premium increase and a cutoff age for renewals. Also, many term policies can become whole policies before the end of your term. You won’t typically have to undergo a medical examination, but converting the insurance plan before your term expires is advisable.
If you arrive at retirement age without any dependents or financial debt, you don’t need a life insurance policy after building up a specific amount of coverage. So, we suggest that you ride out term insurance until it expires. In contrast, dropping permanent life insurance can be challenging, but you should have built up cash value if you have had the policy for years. Upon canceling it, you will receive a check for the accumulated funds.
Find the Right Health Insurance Solutions for Your Needs
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.