Maybe you have reached retirement, have no dependents, and now feel life insurance is unnecessary for you. You could possibly be right. But if, later on, you have gathered debts and want them covered when you die, you may choose to do it with life insurance - or a different option. Here's some retirement advice on numerous options with life insurance.
Retirement advice on using an existing life insurance coverage
In case you have a life insurance policy and feel you might want it to handle spectacular debts at your death (e.g. home loan, credit cards, etc), then maintain it. Another reason to keep life insurance in retirement is to equalize your estate. Say you're leaving an asset that's difficult to separate, your house, to once son. You can leave the life insurance benefit to the other son.
Retirement advice on obtaining a new life insurance policy
Should you be concerned about qualifying for new life insurance to fulfil you're demand?
Sure, if you would like a policy greater than say $50,000 of death benefit. When this happens, your health wll determine eligibility. Health isn't a concern for a small policy. You've seen those late nigh Tv advertisements from AARP and Colonial Life on buying a $50,000 policy regardless of health. The will charge you a whole lot however they will sell a coverage to anyone.
Retirement Advice on life insurance policy alternatives
Financial institutions have discovered it lucrative to offer insurance to take care of financial debt you have with them. Credit card companies and banks offer insurance deductibles on your outstanding balances. This'll most likely cost you a couple of dollars every month. And if you die, this debt-based insurance policy pays that specific debt in full. Occasionally they do this for car loans.
So if this kind of debt-based insurance coverage is a better alternative than paying for a regular lifestyle insurance plan to cover your debt, go for it. And if so, and you still have additional use for a regular life insurance policy, be sure to subtract off the debt protected by your debt-based insurance from your forecasted death benefit needs for your regular life insurance coverage.
Note that any policy problems where well being isn't a problem for your insurance company usually charges much more. Your least expenses insurance policies usually originate from insurance firms who require taking a look at your health background and sometimes a health insurance exam.
Retirement Advice on liquidating an active life coverage
If you have a policy in retirement and not require it while you do not have debts or estate equalization issues as explained above, then you can either surrender it to the insurance company or sell it to a third party. Just ask your insurance professional about each options and also to get you the quotations.
Retirement Advice: disclosures about life insurance coverage
The acquisition of life insurance involves costs, charges, expenses and potential surrender costs and depends on the health of the applicant. Not all candidates are insurable (excluding for instances exactly where the insurance firm offers a no-health evaluation coverage). If a policy is organized as a modified endowment agreement, withdrawals will be subject to tax as ordinary income and withdrawals before age fifty nine ½ are subject to a 10% penalty.
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