It might seem like the time for life insurance has passed if your kids are grown, the house is paid for, and you're about to retire (or have already!). You might believe that Social Security, your investments and savings will cover any future expenses.
In reality, these myths deter many retirees and empty-nesters from acquiring or maintaining the life insurance coverage they require. If any of these four myths apply to you, you might want to reconsider.
After my mortgage is paid off and my children can support themselves, I won't need life insurance.
Perhaps, but even if you passed away today, your spouse would still need to pay for basic necessities. What if your spouse lived 10, 20, or even 30 years longer than you? Without life insurance, would your financial plans allow your spouse to continue living the lifestyle you two have worked so hard to achieve?
Purchasing life insurance as I get older will be too expensive.
Although the cost of life insurance increases as you age, this does not necessarily mean that you cannot afford it. For instance, a 55-year-old healthy, non-smoking man can purchase a 20-year, $500,000 level-term policy for about $1,600 annually. The annual cost is about $1,200 for a 55-year-old woman in good health. Don't assume that you can't afford coverage if you have a continuing need for it.
I once believed that I would need life insurance to assist with paying estate taxes, but that is no longer an issue.
There is no guarantee that you will never owe federal estate tax, even if you do not at the moment. Tax laws are subject to rapid change. There are numerous other reasons to keep life insurance coverage even if they don't, though. When you pass away, life insurance can cover expenses like state estate taxes, unpaid debts, probate fees, and funeral costs, allowing your loved ones to concentrate on their grief rather than financial worries. Additionally, it can be applied to business succession planning or to distribute an estate equally among your heirs.
Visites our - Vegansav.com
