Most people associate taking out a life insurance policy with giving their children financial security. While this is absolutely true, there are many other reasons why implementing a life insurance policy is a vital part of any homeowner’s financial portfolio.
A common misconception in the life insurance industry is that having a policy in place after the children are grown is not necessary. Contrary to this belief, life insurance is still a necessity even after you have no financial obligations to your children.
There is always the spouse to think about; what would happen to them financially if you passed? You must also think about any other financial obligations that you may leave behind after your death.
There are also a variety of life insurance policies that let you enjoy the benefits in the present. There are whole life policies that enable you to take cash out whenever you need it.
With rates at record lows, there really is no reason not to have a life insurance policy of some sort in place, not only for your loved ones, but for yourself as well.
An October 25, 2006 article from the Insurance Information Institute, “Life insurance needs continue even after kids are grown,” discusses the importance of keeping a life insurance policy as you grow old.
“Couples who believe they no longer need life insurance after their youngest child reaches his or her 18th birthday could leave their family vulnerable to serious financial problems, especially if the sole income-earning parent dies.”
Although you may no longer have kids’ bills to worry about, most people still have other financial obligations to worry about. If you are the sole income earner and something happens to you, your family could be saddled with no income and a growing pile of bills.
“Yet even couples with grown children, who have set aside college tuition monies and are close to paying off a mortgage, ought to discuss with their insurance agent or broker the benefits of purchasing a new term life insurance policy when their existing one elapses.”
“The most immediate consideration is that a surviving spouse must be at least 60 years of age before receiving Social Security survivor benefits and, even then, the benefits are allocated on a reduced basis. Full Social Security survivor benefits become available when the surviving spouse reaches age 65 or older, depending upon their late spouse’s birth year. Still, these benefits are inadequate to pay for anything beyond basic household expenses. Term life insurance can help bridge the financial gap for the surviving spouse.”
Many people also think that purchasing a policy when they are in their 40s and 50s, will be much too expensive. But with rates for all policies at all time lows, any income bracket can implement a policy without stretching their budget at all.
The needs of a senior citizen parent or grown children still living at home are all important things to consider as well when choosing your next policy.
“For those looking to move away from term life policies, permanent life insurance—such as whole, universal and variable life—or annuities can be an attractive alternative.”
Although this can be a difficult subject to approach, doing so will protect your loved ones for years to come.
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