Here’s why some retirees benefit from life insurance.
As a retiree, you might have plans to cancel your life insurance policy. And why not? Your kids have moved out, your mortgage is paid off, and you may not have pressing financial obligations to speak of. However, there are some reasons why some retirees benefit from keeping their life insurance coverage. Here’s what you should consider before canceling your life insurance coverage.
If you retire without debt and can live off your savings, then you probably do not need life insurance. However, if you still have debt, need to work a part-time job, and have people depending on your income, then you cannot afford to skip out on life insurance.
Even if you have a pension to rely on when you retire, this does not necessarily mean that you can forgo life insurance. While your pension will offer you a source of income after you retire, what happens if you were to pass away? Most pensions get cut off when the pension holder dies. If your spouse was reliant on your pension, then the loss of this income can leave them on shaky financial ground. The only way to ensure that your spouse has the income they need is by maintaining your life insurance coverage. This way, your death benefit can make up for the loss of your pension and offer your partner a much-needed source of income.
This is why many retirees need to maintain their life insurance coverage. Do you have additional questions regarding your life insurance needs? If so, then contact the experts at Randy Jones Insurance Services in Pleasanton, California. We are ready to assist you with all your life insurance needs today.