Retirement Planning

Should Senior Life Insurance Be Part of Your Retirement Plan?

Do you still need life insurance once you achieve retirement? The answer depends on your overall financial picture and family circumstances.

Why You May Want to Consider Senior Life Insurance

When you think of retirement planning, life insurance isn't always at the forefront. And in many ways, getting life insurance when you're older and headed into retirement may not seem to be the most sensible use of your retirement income.

However, life insurance needs are different for everyone. And in many financial situations, senior life insurance can be that additional layer of protection that you and your spouse may need - well into your golden years.

So before you decide to cancel your life insurance, let it lapse or expire, you may want to consider the following reasons for keeping life insurance as you get older and move into retirement.

Because you have dependents.

The ability to replace your income as the primary wage-earner for those who depend on you for financial support is the primary purpose of having life insurance. So while you may not be raising young children, you may have a spouse, special-needs adult child, a sibling or even aging parents who rely on you financially.

Because you have debt.

Do you still have a few years left on your mortgage? Are you paying down student loans, car loans or other consumer debt? If you're a senior and still working so that you can continue to chip away at lingering debts, then you might want to consider life insurance coverage - at least until you have the bulk of your debts paid off. Otherwise, you'll be leaving that debt behind for your significant other.

Because your estate is subject to taxation.

If you anticipate your estate being hit with a big tax bill after you're gone, don't pay taxes late, but start to consider a life insurance policy. A life insurance policy can provide the immediate funds your family will need to settle your tax bill. Without the money in hand, your loved ones will have to come up with the cash on their own. This could mean selling real estate, personal property and family valuables, a business, or even siphoning off a chunk of their inheritance cash in order to pay estate taxes.

Because you want to leave a legacy.

Do you have a favorite charity or organization that you would like to continue to support after you die? A life insurance policy can be the ideal way to give back, while leaving a financial legacy.

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All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.

Senior Life Insurance

Does retirement mean foregoing your life insurance? In many situations, having senior life insurance can be a vital part of your retirement plan. This article looks at reasons for keeping or getting additional life insurance as you move into your golden years. Consider your family and any outstanding expenses when planning for your retirement. Financial dependents or large financial burdens may be left to your loved ones to take care of if you do not plan for senior life insurance. Not only can insurance coverage during retirement help provide for your family, but it can also alleviate difficult and unforeseen financial situations. Among these options, you can also consider donating money from your policy to a charitable organization. For more information, visit the Protective Life Learning Center.

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