Your guide to life insurance needs post-retirement.
You may think that after you retire, you can just drop your life insurance. After all, people aren’t depending on your income anymore, so why would you need to keep your policy in place?
The fact is that there are a lot of reasons why your family might need this type of coverage besides your paycheck. Here are just a few reasons why you might want to consider keeping your life insurance policy in place.
- Income Replacement: Wait just a minute, you are probably thinking. Didn’t we just talk about how you wouldn’t need to replace your income after you retire? Remember, though, that punching your last time card does not mean you will stop getting revenue from your company. If you have a pension plan on which your family is relying, you need life insurance to replace that income stream.
- Tax Coverage: If your retirement income pushes you into a higher tax bracket than anticipated, do not fear! With a whole life insurance policy, you can grow your cash value tax-deferred and borrow against that policy to get income that will not be subjected to income taxes.
- Illiquid Assets: If you have preferred to keep your assets tied up in real estate, you may want to consider life insurance. After you pass away, your family will have to face the estate taxes and the challenge of selling all of your property on a quick timeline to cover them unless you have a death benefit coming their way.
Of course, every individual’s situation is different. If you are nearing retirement and want to talk to an insurance expert about your specific life insurance needs, contact The DiForte Agency. Serving Staten Island and the surrounding New York area, we are dedicated to helping you fully protect your family in every stage of life, including after you retire.