Having sufficient insurance coverage is essential for every family’s financial security. Most people know that they must have a life insurance plan to help provide for their family in the unfortunate event that the policyholder dies. It is easy, however, to think you are sufficiently covered just because you bought a policy several years or even decades ago. Everyone’s life changes as they grow older, so you cannot take it for granted that the coverage you purchased long ago is sufficient to meet your family’s needs today.
One life change that is easy to overlook regarding insurance planning is retirement. Just because you have successfully raised your children and built up a solid nest egg does not mean you should ignore your life insurance coverage. There are several reasons you want to look at the amount of your life insurance coverage once you retire.
First, retirement almost always means that any life insurance your employer provides will disappear. At the very least, your coverage will be reduced significantly. To make up for this loss of coverage, you will need to consider increasing the death benefit of your current personal coverage.
Secondly, inflation means you will have to review your policy limits regularly to ensure the coverage remains sufficient to meet current needs. Inflation is particularly devastating to those on a fixed income, and you want to give your survivors enough funds to take care of their future needs.
Finally, there will be a drop in retirement income for your surviving spouse in the event of your death, and you need to prepare for this eventuality. An extended illness could also deplete your savings, so ensure your coverage is enough to cover any outstanding medical bills.
A variety of factors will affect your life insurance costs, not the least of which is your age. Speaking with Brian Gruss, a qualified insurance professional is the best way to obtain the most coverage for the lowest cost; thus, it is essential to solicit their advice as you review your life insurance. In any case, you should never let retirement become an excuse to ignore your insurance plans, and the sooner you review your policy, the better prepared you will be for the next critical stage of your life.