Episode 186: Life Insurance After 65? Three Good Reasons...

Why would you get life insurance after the age of 65? David shares three good reasons why you might consider using this financial tool.

 

Key Points:

0:34 - David has been spending some time on the golf course!

4:08 - Why should we consider life insurance after 65?

5:00 - Some use life insurance for income replacement.

8:03 - Some policies can help cover long-term care needs.

11:04 - Having enough liquidity to pay estate taxes.   

13:57 - How does David include this in the planning process?

 

More About Today's Episode:

When you’re young, there are plenty of good reasons to get life insurance. If one spouse dies, this helps cover things like the home mortgage, college education for your kids, and living expenses. In your 60s and retired, you might be glad to not need it for those reasons anymore. There are however a few other reasons to consider getting life insurance, even when retired. 

One reason people get life insurance in retirement is to work as an income replacement. If you have a pension, what will replace that monthly income for your spouse when you die?

Another reason is to use a life insurance policy as a long-term care benefit. David likes this option because you don’t know if you’ll need long-term care insurance. But with a life insurance policy that has a long-term care benefit, when you die, your spouse or heir still gets a tax-free death benefit. It’s not “use it or lose it” like a long-term care policy is.

Finally, life insurance may help have enough liquidity to pay estate taxes. The estate tax goes up pretty quickly. If you find yourself having done really well over the years, this might be worth looking into to provide a tax-free lump sum. Ultimately, it comes down to how much you want to spend to take risk off the table. Check with your financial advisor to see if it’s something that works well in your financial plan. It’s usually best to do so right around the time you’re retiring.

 

For additional financial resources, visit us online: http://coveryourassetskc.com