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Now that people have reached their retirement years do you still see the need for Life Insurance? I often hear people don't have a need for it after retirement so I'm asking people who are in the know.
Personally, we never bought life insurance (other then employer paid for) before we were retired. Reason is we both were earners with no children so one of us could have lived just fine without the others income...sounds harsh.....LOL
Harsh sounding also, but the basic question is: Are there those that need (as in cannot get by comfortably without) money upon your death?
I have carried life ins to protect my wife since she will lose my pension and benefits when I pass,life ins. company will win as of now.I can only keep it till 80,two more years.I have paid now for 20 years.
Most pension (When you sign up for them (the default is dual life)). But your spouse can sign off on other options (straight life, X (normally 10-15years) guaranteed) Single life + X% for spouses life. Annuities also have these types of options. Life Ins as you get older will be VERY costly, (after all you are going to die soon).
My wife will continue to receive my full pension when I die and her Social Security will increase to equal mine. She will also continue to receive her pension. If she predeceases me I will lose both her pension and Social Security but living on mine will be easily possible.
We both have some life insurance - not a lot but something that will be fairly immediate "just in case." For me it would ease adjustment to a lower household income. For her it would permit her to put the house on the market and move back close to family if she chose to do so. In both cases, we would not need to dip into savings.
i will eventually use a spl policy to leave my wife nice clean tax free money with no rmd's from my taxable ira accounts.
i spoke about this strategy many times. basically you buy a policy for the amount of the iras. it cost a freaction of what it pays most of the time.
instead of say a million in taxable money shes gets 1 million tax free money. the kids will get whats left of the iras and they have their lifetime to pay the taxes on it.
we both use a small life insurance policy to leave our kids something up front since this is a 2nd marriage and we both have kids but are leaving everything to each other.this way all the kids get something without waiting for the 2nd spouse to die.
My husband and I both believe in having life insurance. His concern and mine (of course) is if anything happens to him - I have a disability so things would be tough.
I need to check on some of these suggestions. One of my policies is from 1987 and years ago, a co worker looked at it and told me that Equitable was not issuing these anymore - make the payments no matter what so I do.
Life would have been easier on us had my father not cashed in some of his policies - he went the viatical route - we were adamant - don't do it but he did it. Long story.
To the extent your life insurance is intended to protect your earning power, when you retire (put your earning power on the shelf) you don't need it anymore. As some posters noted, life insurance may still be desireable to protect pensions or other benefits that would go away. All depends on your circumstances.
Very true. You need to ask yourself what the purpose of the life insurance would be. My wife and I live off my pension...and I have a pretty decent IRA stashed away. My wife didn't work outside of the house and has no pension.
Since she would receive a reduced annuity if I die first, I have a life insurance policy that will make up the difference. I just calculated everything so that she would be able to have the same standard of living. If my wife had a pension comparable to mine...we wouldn't bother to have any life insurance...
The basic question is: Are there those that need (as in cannot get by comfortably without) money upon your death?
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Good thread....
