As you reach retirement age, you may realize that your ability to bring in income to help fund the rest of your and your spouse’s life is limited by both your age and health. Did you know that life insurance can provide additional support? While life insurance is generally thought of as a form of replacement income after the policyholder’s death, it can also act as an income buffer during retirement. If you don’t already have a life insurance policy, here are 16 reasons to buy it after age 60.
- It can be used to pay for your funeral expenses, which can easily exceed $10,000.
- Life insurance is often used to pay off outstanding debts, such as a mortgage or car loan.
- Benefits can provide continued care for a disabled family member.
- Your family can use benefits to pay estate and inheritance taxes.
- As it’s known, life insurance allows you to leave a legacy behind for your children.
- If your children’s property and business interests are distributed unevenly, life insurance provides a way to balance them.
- Benefits can be used to offset the loss of your retirement income (pension maximization) so your spouse can maintain his or her lifestyle.
- It provides funds that can enable you to buy out the interests of a deceased business partner.
- It helps offset the loss of a key person within your small business.
- You can choose to leave benefits to a charity of your choosing.
- Dividends can provide a tax-free source of additional retirement income.
- Funds beyond those you wish to leave to your children can be left to your grandchildren.
- Benefits can collateralize loans.
- Certain policies can offer a source of emergency funds while the policyholder lives.
- You can gain additional income with a policy that distributes annuities in order to accrue cash value.
- Life insurance benefits can replace assets that are lost in a volatile market.
It’s never too late to purchase a life insurance policy—even if you’re nearing retirement age. Securing a policy can help you protect your future, so don’t delay any longer. Get your policy today.