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Why You Need Life Insurance Immediately After You Retire
Reaching retirement is one of the most rewarding moments in life. After years of dedication and hard work, your efforts have finally paid off. As you prepare to kick back, relax and unwind, make sure your family is financially protected with the right life insurance coverage.
When you leave the workforce, you’ll lose any employer-provided life insurance you’ve been receiving, so purchasing your own policy is important to ensure your loved ones stay covered. Keep in mind that, as you get older, your health risks also increase. For example, a recent University of Michigan health and retirement study showed that the risk of a heart attack or stroke is 40% higher in recent retirees than those still working. If you’re newly retired, having life insurance is vital to keep your loved ones and your assets protected. In this article, we’ll help you understand what types of life insurance make sense for new retirees and how life insurance can benefit you in retirement.
What type of life insurance makes sense in the first year of retirement?
In the first year of retirement, you’ll have several decisions to make about your financial future, including what type of life insurance makes the most sense for your needs. There are several types of life insurance that will best meet the needs of new retirees. As a retiree, you’ve likely paid off or are close to paying off long-term expenses like a mortgage or your children’s education. If this is the case, a term life insurance policy will let you customize the coverage length that makes the most sense for you and your family at this stage of your life. Term coverage only extends for a predetermined amount of time, usually a 10-, 15-, 20-, 25 or 30-year term.
If you prefer a policy that extends for the rest of your life, you can opt for a permanent life insurance policy. This type of policy has a cash value component, which you can use as an investment tool or to supplement your retirement income. You can also opt for final expense insurance, which covers end-of-life costs like medical bills, funeral expenses and outstanding debt.
Choosing a term or permanent policy amount helps ensure that you leave your family with a legacy of care and protection. Life insurance death benefits can provide an inheritance to your loved ones when you pass away, especially if you opt for a higher coverage amount.
What does life insurance help retirees pay for?
When you retire, your financial plans will look different than they did when you were still working. Life insurance can help meet various financial needs and goals in retirement, and different types of coverage have different benefits for retirees. For example, a permanent policy has a cash value component that can help provide additional income for retirement, where a term policy can help ensure your loved ones can pay for expenses like debts or any remaining mortgage payments if you pass away unexpectedly.
Are you recently retired and need life insurance? SelectQuote can help you find the coverage that makes sense for you.
Having the right life insurance coverage can help give you peace of mind and security as a new retiree. At SelectQuote, we quickly and easily search trusted life insurance carriers on your behalf, comparing quotes and coverage details to save you time and money. We do the shopping while you do the saving, so you can focus on relaxing and enjoying your retirement.
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