People today are living longer, and that means a longer retirement period. But will you be ready?
Recent studies show that 52% of U.S. households age 55 and older have no retirement savings. At least one-third to two-thirds of workers will be unable to maintain their present lifestyle—let alone pay for other expenses like medical and long term care—if and when they retire. Because of this, many baby boomers say they plan to work longer than they expected, and many more plan to work during their retirement years.1
So what about life insurance at this age? Should you continue to keep it, increase your coverage or forego it altogether? If your kids are grown, house is paid off and you’re financially prepared with sufficient income saved for retirement, the latter might be acceptable.
However, if your mortgage, debt and other expenses aren’t “retired,” then you should keep your current life insurance coverage and even consider adding senior term life insurance to help. Senior term life insurance can offer you many advantages, including helping you:
• Pay for medical or long-term care expenses: As you get older, you may have gaps in medical insurance or Medicare that are not covered, such as long-term care. These expenses could be left behind for your loved ones to pay if you don’t have other assets earmarked for it.
• Finish paying off the mortgage or other debt: The average household has more than $130,000 in debt, including mortgage, credit card and auto loans.2 Depending on the type of loan you have, this debt could be passed on to your loved ones.
• Provide financial assistance if you become terminally ill: Some life policies allow you to collect a percentage of benefits if you become terminally ill. These benefits can help pay for care, rather than tap into other assets to pay for it.
• Pay final expenses: The average funeral today can cost up to $10,000.3 Even if you have few assets and no family to provide an income for, life insurance can free your extended family from paying the funeral costs.
1Half of Older Americans have no retirement savings, Consumer Affairs, Mark Huffman, 6/5/2015, https://www.consumeraffairs.com/news/half-of-older-americans-have-no-retirement-savings-060515.html
22015 American Household Credit Card Debt Study, Erin El Issa, https://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/
3Funeral Costs: How Much Does An Average Funeral Cost? 12/10/15, https://www.parting.com/blog/funeral-costs-how-much-does-an-average-funeral-cost/
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