Many Americans first buy life insurance to protect a new family or home. Many Americans also find that their needs change once they get closer to retirement. Whether you decide to drop coverage or double down, retirement years are an excellent time to reexamine life insurance. Today, we’ll be offering a few options.
Why You May Need Life Insurance More Than Ever
Here are a few reasons why life insurance is crucial to have, especially in your 60’s and up:
- You may still be working. If you and your spouse are still working, then it’s wise to protect the income that you bring into the house with life insurance.
- Your net worth is high. Permanent life insurance is beneficial for people with estates that exceed 5.4 million dollars to help minimize estate taxes.
- People depend on you financially. If you still take care of your children or other family members, you may want to reconsider turning a term policy into permanent.
- You want to live off of your cash value. Some people choose to fund their retirement by utilizing the cash value from their permanent life insurance policy.
Buying Life Insurance When You’re Older
Buying life insurance after 40 may prove to be challenging. That’s why we always advise that people do so at a young age. Life insurance quotes tend to go up the older you are. Signing up for a shorter term policy may be possible, especially if you’re in excellent health. If you’re not in the best of health, there is such a thing as guaranteed issue life insurance where the benefits are much lower. So, instead of $500,000 worth of coverage, you’d only be responsible for paying off $20,000 worth of coverage.
Renewing Your Policy, Extending It, Or Dropping It
Most term life insurance policies let you renew it at the end of the term, regardless of the condition of your health. However, there could be a possible premium increase, and there could be a cutoff age for renewals. Many term policies can turn into whole policies before the end of your term. Typically, you won’t have to undergo a medical exam, but we do advise that you convert the insurance plan way before your term expires.
If you get to retirement age without any financial debt or the need to continue to take care of children or family members, then you may be able to do without a life insurance policy after building up a certain amount of coverage. We suggest that you ride out term insurance until it expires. Dropping permanent life insurance is trickier, but if you’ve had the policy for decades, then you should have built up a decent cash value. Upon canceling it, you’ll receive a check for the funds you accumulated.
Partner with Malden Solutions Today
Malden Solutions has a wealth of expertise in providing employer insurance solutions, HR solutions, and individual insurance solutions to businesses both big and small. Our team of seasoned professionals can help you navigate the rapidly-changing world of insurance with ease. We partner with businesses and individuals throughout the country to provide our dedicated services for employee benefits but also work within our surrounding communities in Maryland, Northern Virginia, and Washington, D.C. Contact us today to learn more about how we can provide effective, dynamic solutions for your business. Stay connected with us on Twitter, Facebook, and Linkedin.