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Will You Still Need Life Insurance After You Retire?


One thing to keep in mind, is that just because you have retired, this does not mean that you no longer need your life insurance policy. According to experts at companies like Colonial Penn, there are many reasons why you need to keep your life insurance policy intact. For example, perhaps your retirement investments did not produce as expected, maybe you have been forced into early retirement, or perhaps you are trying to make sure you have enough coverage for your funeral expenses. With more and more couples waiting to have children these days, maybe you still have kids at home.  In addition, having a mortgage, other debts, or an elderly loved one at home counting on you, there still can be a need for that extra support. In other words, if you have loved ones, owe money, or anyone else who depends on you financially, these things are not going to disappear the moment you retire.

Will You Still Need the Same Coverage?

If the original reason for buying life insurance was to replace your income and protect your family by increasing your investments, you may no longer need it. But, then again, if you have your money tied up in investments where taxes must be paid when your survivors close the accounts, inheritance taxes that must be paid, and many other expenses. These might include probate and administration costs, perhaps you have debts or a mortgage that must be paid off. You need to make sure your life insurance coverage continues to be enough to take care of these expenses and still leaves your surviving family in a financially stable position.

Can You Still Buy Life Insurance if You Have Already Retired?

Just because you have reached retirement age, this doesn’t mean you can no longer buy life insurance. Consider this, your estate is worth more than the current amount of your federal tax exemption, leaving your family with taxes that must be paid. By investing in a life insurance policy, you provide your family with a way to pay these taxes and more. The same applies if you took a cash payout on your retirement that left nothing in the way of a survivorship provision, taking out a life insurance policy will help ensure your spouse is properly taking care of in the event of your death. Just keep in mind that life insurance premiums increase as you get older, so while you are able to purchase a plan after you have reached retirement age, the monthly payments could be significant.

Anything Else Might be Missing?

Most people don’t fully understand the benefits of having a life insurance policy in place. For example, you have been diagnosed with a terminal illness, but you don’t have enough money in your savings account to cover the medical and non-medical bills. If you choose an “accelerated death benefit” provision, you should be able to contact your insurance company and withdraw money from your policy to help cover your expenses and help you avoid having to file for bankruptcy protection. The good news? Investing in a permanent life insurance policy pays better rates than many CDs and savings accounts. It represents a very safe way to invest your money with zero risk and at the same time assuring your family through a very difficult time when it’s needed most.



Are you superstitious? I’m typically not.

But yesterday as I was typing up a post about mending holes in pants and being mid-way through a No-Spend week, I swear I felt a little bit like I was jinxing myself. I ended the post with this one sentence:

Fingers crossed there are no disasters and nothing crazy comes up! (knock on wood)

I swear I felt a little tingle in my tummy, and the hairs on the back of my neck stood up. It was like when someone is behind you and you can *feel* them without actually seeing them. I brushed it off at the time. But I sure did remember the feeling at 6:00pm that evening as I was driving home from work, when my car started dinging a million warnings and the power steering went completely out on me.

Luckily, I was able to safely navigate into a parking lot on the side of the road. I was able to call hubs to come get me, and everything was fine (no one got hurt, no accidents, etc.)

BUT. So much for that “no spend” week.

The silver lining of the story is that I still have an extended warranty on my car! Remember when I just had to use it for the first time this past summer? At the time I said I should probably cancel the warranty afterward because, honestly, who ends up using it more than once? Statistically speaking, I thought we were in the clear. We should cancel the warranty after the service and take whatever refund we were owed (since we had bundled the warranty with the car loan, it has already been paid in full).

I am now SO GLAD we didn’t! I was able to use our Roadside Assistance through our car insurance (we use and love Progressive!) to have the car towed to the dealership for the warranty repair work. I’ll also be able to use a loaner car, also covered by the warranty company, for up to 7 days. There’s a deductible that applies (it’s either $200 or $250, can’t remember at this point), but I’m sure that’s MUCH better than what I might end up paying otherwise (there’s some issue with the power steering, advanced trac, and also some warranty backup camera issues that were unrelated but will get repaired at the same time).

It’s still a huge inconvenience. Last night was a mess – super late dinner for the kids, no baths, late to bed. And this morning was tough too – with only one car we had to take the girls in early so hubs could get to his own school classes. I’m at home waiting for the tow truck (which is currently running late) and then I’ll be getting picked up by the rental car company so I can go get a rental for the week. Obviously totally interfering with my work day and I’ve had to cancel some meetings and move other things around. I’m frustrated we aren’t going to be able to have a no-spend week after all and I’m still stressed about spending extra money given our tax situation (in fact, one of the meetings I had to move from this morning was supposed to be a meeting with our CPA).

But even with the annoyances and inconveniences, I’m BEYOND GRATEFUL I still have this extended warranty and that it’s still in effect. Guys – it expires at 125,000 miles and I’m at 120,000 miles right now. This is HUGE!!! I don’t know what the total vehicle costs will end up being, but I’m thankful that my personal liability is limited to just the deductible.

Now…is it the weekend yet??? Ooof!!