One of the things I have thought about since reaching retirement age is whether or not I still need personal life insurance. I no longer have young children to think about taking care of, so why would I need to have it?
There are many reasons why you still need personal life insurance as you get older. First, of course, is so that your survivors would have enough money to bury you when you die. The cost of funerals has risen every year, so that the average cost is now in the thousands of dollars. Would you want to leave your adult children with the burden of finding the money to provide for a decent burial?
Second, if you are married and your spouse survives you, will he or she have enough money to live on? Would they have to pinch pennies so tightly that they wouldn’t be able to go to a movie or even buy a new book? If you have a personal life insurance policy, you can be assured that you will be able to leave your precious loved one with enough money to live a comfortable life.
Is your home paid for? If now, how will your survivors pay for it? Will your spouse or adult children still need a place to live? Could they afford to pay for it if you died? This is a quite morbid question, but one you need to think about, especially now that you are getting older. Personal life insurance will help ease the financial burden for those you leave behind.
So, how much life insurance do you need? This question is important, but every person will have to figure out for themselves how much they will need. If you have no children or grandchildren to worry about, and your spouse has a sufficient income, then you may be fine with having a small policy that will pay for your burial. If, however, your spouse will need to supplement their income after you are gone, then you will need to consider a larger amount. Most insurance companies recommend the most coverage you can comfortably afford.
Some things to consider when shopping for life insurance are how much will it cost, will the coverage cease at a certain age, and will you need to get a physical examination before the company will cover you. All of these things are important, so getting a good insurance agent will be beneficial to you.