Just because you're an empty nester doesn't necessarily mean that you no longer need the protection of a life insurance policy. In fact, there are several reasons why life insurance is important after the kids have left home. Here are five:
1. To provide bequests to heirs and charities
Do you want to leave money to specific heirs and/or your favorite charity? The proceeds from a life insurance policy can ensure that some, or all, of the benefits from your policy go directly to the people and organizations that you want. Without a life insurance policy, the executor of your estate may have to liquidate your assets in order to grant your wishes after you are gone.
2. To offset lost income if your spouse dies after Social Security benefits have begun
The proceeds from a life insurance policy can help offset the benefit lost after the first spouse dies.
3. To meet financial commitments based on two incomes
Most couples make joint financial commitments based on their combined income (think mortgage, vehicle loans, credit cards, etc.). A life insurance policy on both lives can provide the surviving spouse with enough money to meet all those financial commitments that you made together.
4. To supplement “lost” retirement savings
Are both you and your spouse working hard to save for retirement? Unfortunately, a spouse that dies early in life could mean that the surviving spouse must now take on the burden of making up for the reduction in retirement savings. Life insurance can help offset this loss.
5. For dependent support
If you have a disabled adult child or elderly parents who depend on you for financial support, life insurance can make sure that your dependents have support to cover their expenses if you should die before they do.
These are just a few reasons why having life insurance is important even after kids have flown the nest. Are you still wondering, “Is life insurance important?” Visit the Protective Learning Center for more information on life insurance and retirement.