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4 Life Insurance Myths An Empty-Nester Should Reconsider

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It could feel that the time for life insurance has past if your kids are grown, the house is paid for, and you’re preparing to retire (or have already!). You could believe that Social Security, your assets and savings will cover any future expenses.

In reality, these myths deter many retirees and empty-nesters from acquiring or keeping the life insurance coverage they require. If any of these four misconceptions apply to you, you might want to reconsider.

Myth 1: After my mortgage is paid off and my children can support themselves, I won’t need life insurance.

Perhaps, but even if you passed away today, your spouse would still need to pay for basic necessities. What if your spouse lived 10, 20, or even 30 years longer than you? Without life insurance, will your financial plans allow your husband to continue living the lifestyle you two have fought so hard to achieve?

Myth 2: By the time I pass away, I’ll have enough money saved up to leave something to my children and grandkids.

Maybe working long hours and handling your family’s finances sensibly can help you accomplish that goal. What happens, then, if you don’t live long enough to achieve your financial objectives? What if there is a protracted economic slump that harms your investments? A life insurance policy can establish an immediate inheritance, enabling you to support a charitable organization or cause that is close to your heart.

Myth 3: I formerly believed that I would need life insurance to assist with paying estate taxes, but that is no longer an issue.

There is no certainty that you will never owe federal estate tax, even if you do not at the moment. Tax rules are subject to rapid change. There are several more reasons to have life insurance coverage even if they don’t, though. When you pass away, life insurance can cover expenses like state estate taxes, unpaid bills, probate fees, and burial costs, enabling your loved ones to concentrate on their grief rather than financial worries. Additionally, it may be applied to corporate succession planning or to distribute your estate equally among your heirs.

Myth 4: Purchasing life insurance as I become older will be too expensive.

Although the cost of life insurance increases as you age, this does not always indicate that you cannot afford it. For instance, a 55-year-old healthy, non-smoking guy can get a 20-year, $500,000 level-term coverage for around $1,600 year. The annual cost is roughly $1,200 for a 55-year-old lady in good health. Don’t assume that you can’t afford coverage if you have a continuing need for it.

Please use our Life Insurance Needs Calculator to determine your specific requirements. Most of the time, an insurance expert can assist you in finding a plan that satisfies your requirements and budget. Use our Agent Locator to get started.

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