After I retire, how much life insurance do I still need?
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Asked May 2, 2015
The amount of life insurance you are going to need in your retirement years will depend on your personal value and how you would like your survivors to live after you have passed away. The exact amount will vary from one person to another, and the cost of your premiums will vary according to several factors concerning your life, health, and activities.
If you have any large outstanding debts that you would like the insurance to pay for, you may decide that one or more term life policies would be the best way to cover them. with term life, the policy can be allowed to lapse once the insured period is over, making this type of policy excellent for things such as paying off the mortgage or some other large bill.
Another good use for term life insurance is to put your kids through college. By setting up a term life policy that expires, say, when your daughter turns 21, you can make sure that you have money put aside to cover tuition even if you cannot be there, and that the policy remains in force until your daughter is old enough to make the decision on whether or not to attend college at all.
For the majority of your insurance needs, one or more permanent life insurance policies should suffice. You should insure yourself for your full worth, including any value derived from involvement with a company or corporation. Beyond that, that amount you choose to be insured is between and your insurance company. You will have the option of naming the beneficiaries you want for each policy, and those can include any person, place, animal or thing, at your discretion. For example, you might leave an endowment trust to your favorite charity, provide care for your favorite pet for the rest of her life, and leave sizable inheritances for each of your children, all under the same life insurance policy.
The exact amount of coverage you need is something you will have to determine yourself. If necessary, consider enlisting the aid of a financial planner or advisor who can help you analyze your total worth and calculate the total amount of life insurance you should have.
Answered May 3, 2015 by Anonymous