Do You Still Need Life Insurance After Retirement?
Life insurance isn’t just for young parents and working professionals. In fact, some of its most valuable benefits kick in during retirement. Yet many people choose to cancel their coverage as soon as they stop working, missing out on opportunities to use life insurance for legacy planning, estate protection, and even tax-free income.
So how do you know if you still need life insurance after retirement? Let’s walk through the main scenarios.
1. Do You Have a Spouse or Dependents?
If someone relies on your income—whether it’s a spouse, a disabled child, or even a grandchild—then life insurance remains important. Even if your Social Security continues to a spouse after you pass, that income may be reduced. A life insurance death benefit can help cover ongoing needs or make up for lost income streams.
2. Are You Concerned About Estate Taxes or Legacy Planning?
High-net-worth individuals often use permanent life insurance inside trusts to pass money to the next generation, tax-free. Even if you’re not subject to estate taxes, life insurance can equalize inheritances, create liquidity, or offset charitable giving.
3. Do You Have Cash Value Built Up?
If you own a whole life or indexed universal life policy, you may be sitting on a tax-advantaged bucket of money. The cash value can be accessed through policy loans and used for income, healthcare costs, or emergencies—without triggering taxes when managed correctly.
At Diversified Insurance Brokers, we regularly review in-force policies to see if they still make sense, or if there’s an opportunity to 1035 exchange to a more efficient contract. Canceling coverage without a strategy could cost you more in the long run. View current 1035 Annuity Rates.
Contact Us Today: Want a review of your current life insurance policy—or need help designing a new one?
📞 Call us at 770-662-8510
📅 Schedule a free consultation: Book with Mike
Or visit our Contact Page: https://www.diversifiedquotes.com/contact-us/
