As retirement age approaches, it’s usually a good time to reevaluate your Life Insurance to see if your needs have changed. Especially if your insurance premiums are high, you may be tempted to cancel the policy, take the cash surrender value, and enjoy retirement. Before doing that, however, make sure there aren’t other uses for your life insurance policy, such as:
- To leave a legacy to heirs-
Even if the money isn’t needed for your children’s support after your death, many people like the thought of leaving a large inheritance to their children or grandchildren.
- To pay your grandchildren’s college expenses
With the rapidly increasing costs of college making it more and more difficult for parents to cover this cost, you might want to use an insurance policy as a college fund for your grandchildren.
- To support adult children
There are a variety of reason why you might want to provide financial help to an adult child. Perhaps your child is a doctor, but has significant debt from college. Or your child might work at a job that doesn’t pay a substantial amount of money. Perhaps your child is disabled and for whatever reason can’t support him/her self. Whatever ther reason you may be in a situation where you have to support an adult child.
- To help with long term care costs
Many individuals don’t purchase long term care insurance believing their spouse will take care of them. However, when one spouse dies, there may not be anyone to take of the surviving spouse. The proceeds of a life insurance policy can be used to provide long term care for the surviving spouse.
- To optimize pension benefits
When retiring, irrevocable decisions about pension plan benefit payments must typically be made. You could use the proceeds for a life insurance policy as a source of income for your spouse after your death.
Still have questions on if you should reevaluate your life insurance? Let our expert team help you today. We can be reached at 954-282-6891.
