The purpose of life insurance is to protect your loved ones from financial hardship if you die. It is meant to replace your income. When you retire and your income is coming from retirement funds, social security payments, etc., it’s easy to think that life insurance is no longer necessary. However, as we tell clients at our Yuba City insurance agency, there are a number of good reasons to continue your protection.

Insuring the Golden Years

While every family’s situation is different, here are eight reasons you might want to have a permanent life insurance policy in effect during your retirement.

  1. Final expenses. The death benefit from a life insurance policy can help your beneficiaries handle funeral expenses, estate and inheritance taxes, etc. These costs can add up quickly, and become a burden to your family.
  2. Retirement doesn’t always mean no working. It’s not uncommon for people who are technically retired to continue to work to some degree. If that income is important to maintaining your household, you will want to replace it in the event of your death.
  3. Replace lost benefits. In some cases, a surviving spouse is no longer entitled to benefits received through their partner if that person dies. The death benefit received from a life insurance policy can be critically important in that case.
  4. Debt payment. While we all hope to be debt-free when we retire, that’s not always achievable. The funds from a life insurance policy can be used to pay off debts such as mortgages.
  5. Providing for other family members. In many families, a person who has retired is still providing not only for their spouse, but for children, grandchildren, or elderly parents. Life insurance can help you take care of loved ones.
  6. Loss of group coverage through an employer. Many group life insurance policies sponsored by an employer expire when you retire. Your individual life insurance policy can replace that lost coverage.
  7. Available funds for terminal illness. In some cases, a life insurance policy can have an accelerated death benefit rider. If you develop a terminal illness, those funds can help pay for treatment or nursing home care.
  8. A lasting legacy. Our Yuba City life insurance policies allow you to name a charity as your beneficiary. If you want to continue supporting the good works of a charitable organization after you die, your policy can do that.

What’s Right for You?

No two people or insurance policies are exactly the same. To learn more about the benefits of life insurance in retirement, contact our Ernstam Insurance office in Yuba City today at 530-751-1212 to make an appointment.

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