You’ve probably been told that the rule of thumb is to purchase term life insurance that gets you through your working years until you’re less vulnerable financially and no longer need the coverage. Hopefully, by the time you retire, you’ll have college debt payed off, owe less on your home, and have less of a need to replace one partner’s income in the event of an unexpected loss.
What you might be overlooking, though, is the fact that an entirely new set of risks exist once you reach retirement. And that those risks only increase with each passing year. Here just a few post-retirement expenses to consider:
- Medical expenses – Even with Medicare and Medicare Supplement, retired couples can still expect to pay upwards of $220,000 in out-of-pocket medical expenses.
- Wealth transfer – Couples who have more than enough money to support them in retirement may find that life insurance is an effective way to transfer that wealth to their heirs.
- Required minimum distributions – Since retirees are forced to take distributions from qualified accounts beginning at at 70 1/2 (whether they need it or not), life insurance is another way to avoid paying taxes on that wealth unnecessarily.
- Unexpected events – No matter how carefully we plan, there are always curve balls that come at us. From children who need financial assistance to having to retire early, life insurance is another way to prepare for whatever comes.
For more information, you can read this full article at LifeHealthPro. If you have questions about whether you’re adequately covered, you can contact Sequoyah Group to talk more about this important topic.