There's a misconception that life insurance is only for people with young families, dependents or those with significant debt. Everyone's financial situation is different, but life insurance has several valuable features that can benefit retirees. Life insurance proceeds are typically tax-free. Other parts of your estate may be subject to taxes, reducing the amount of money available for your beneficiaries. A life insurance policy can help cover the taxes owed.
Final Expenses
Funerals, or celebrations of life, can be expensive. The national average is $8,300 for a funeral but can cost in excess of $15,000. Having life insurance proceeds allows the family to pay the cost and take on the financial burden.
Pay Off Debt
Approximately 20% of retirees still carry a mortgage, and about 67% carry credit card debt into retirement. Life insurance is a great way to prepare for debts to be paid and preserve assets of the estate.
Future Income Stream
Life Insurance can provide a source of income replacement for those dependent on you and help them maintain their lifestyle. Whether you have a surviving partner, children, grandchildren, churches or community organizations, life insurance provides financial stability. Retirees can name charities as a beneficiary life insurance can be a donation to leave a legacy. Some life insurance policies that accumulate cash value over time give retirees even more flexibility during their retirement years.
Anthony Deal
President/CEO - Insurance Centers, Inc.
