Upon your retirement, there is no other better way to spend the rest of your life but by enjoying each day touring in various places or taking vacations left and right. Ideally, upon retirement, you are done repaying all debts and all your children are already making their own living.
However, if in any case, you would need extra tax-free savings to cover your future needs (like possible hospitalization or funeral after death), it would be wise to still buy and keep a life insurance policy. It will help you to live with dignity after retirement and you will also get the mental peace.
How a Life Insurance Could Help You is Here
Funding Life Needs of a Disabled Child
If you have a disabled child and you worry about the perpetual or continuous financial support for him/her after your demise, a cash-value life insurance would be needed.
Just be sure to purchase a policy that will bear sufficient benefits to cover all your disabled child’s projected expenses, whether for medical care or for assisted living.
There are special products for such a purpose like a universal life policy or a whole life insurance. The payout would be given to your disabled child or other relatives upon your death.
For Estate Planning
Proceeds from a cash value or permanent life policy could be considered as an immediate source of cash you could leave behind to your heirs. The liquidity you would leave them with could cover not just your possible funeral expenses but also the inheritance or federal/state estate taxes that must be paid if your assets would be transferred to them after your death.
This way, your heirs would not have to worry about gathering funds to pay estate taxes or selling a portion of your properties, business, stocks, or jewelry just to cover the government-collected cost.
Leaving Behind a Charitable Legacy
You may intend to leave a legacy by making donations to a worthy charitable institution. Most charities now advise their donors, especially those in their retirement years, to buy cash value life insurance (with the charity as declared beneficiary) instead of making big donations to the institution.
For instance, if you plan to donate $10,000 annually to a charitable institution, why not buy a life insurance instead with premiums that are equivalent to that annual donation amount? If you do so, you could be leaving behind benefits worth up to $500,000 to your chosen charitable organization. This could be your gift of life insurance to the charities you support.
Debt Repayment Upon Your Demise
A guaranteed term life insurance policy is ideal for retirees who are still shouldering large loans even after retirement. The premium could be quite costly compared to other products but could yield a benefit that could be more than enough to repay debts you might be possibly leaving behind to your family.
To protect your heirs from a possible loss of steady income upon your death, a term life insurance could be considered at this point of your life phase. If your beneficiaries die before you do, you could consider canceling the policy and take back a portion of the total amount of premiums you have paid.
This way, you could recoup your costs and stop incurring expenses to shoulder regular premium payments.