You purchased life insurance to make sure your children were provided for no matter what. Now that they’re grown, and you may be left wondering whether you still need life insurance.
Don’t be too quick to abandon your policy. Although everyone’s situation is different, there are many reasons to hang onto life insurance coverage even after the kids have moved out.
Your Children May Still Need You
Your kids are grown, sure, but that doesn’t mean they won’t need financial support. If your children lose their jobs or face other serious financial difficulties, you can probably expect a call from them. (Maybe the first call in a while, but that’s another issue.)
You might not like being the Bank of Mom and Dad, but you may still want to provide support when you can. With a life insurance policy, you can continue to do this, no matter what.
Other People May Need You
Your children may not be the only people who depend on you.
In many modern families, both spouses work – and both of those incomes are needed. The loss of one income can lead to financial devastation for the surviving spouse and turn retirement plans upside down.
At the same time, you likely have parents who are aging and may require expensive care. Your children, now adults, may start their own families soon. A life insurance policy can let you provide for all of your loved ones.
You Don’t Want to Leave a Legacy of Bills
If you’re like most Americans, you have some debt – possibly a lot of it. This may include a mortgage, car loans, credit cards, student loans and other types of debt.
Even people who don’t carry debt may end up leaving their estate in debt when they die. This is because both medical bills and funeral services can be very expensive.
If you die with debt, your estate will have to pay off the debt before your heirs receive anything. A life insurance payout, however, can go directly to the beneficiaries, and it typically does so tax-free. The beneficiaries can use the funds to pay off debts, such as mortgages on jointly owned property, if needed.
You May Need Some Living Benefits
Once your children are grown, it’s time to start focusing on your retirement, and this includes making plans for long-term care costs. According to the U.S. Department of Health and Human Services, the majority of today’s 65-year-olds will need long-term care at some point. Care can cost thousands of dollars each month, and it’s not typically covered by Medicare or other types of health insurance.
The right kind of life insurance can help. Unlike term life insurance policies, permanent life insurance policies never expire, and they may be useful when paying for long-term care and other retirement costs. In addition to the death benefit, permanent life insurance policies accumulate a cash value that can be accessed by the policyholder. Some policies – certain whole life policies – even provide annual dividends.
It’s also possible to add a living benefits rider to some permanent life insurance policies. These riders can provide benefits during the insured’s lifetime, for example, if the insured becomes chronically ill or requires long-term care.
Find the Policy That’s Right for You
There are many reasons to continue life insurance coverage after your children are grown. However, your situation has changed, and your life insurance needs may have changed as well.
While you had young children, you may have found that you needed the affordable coverage provided by term life insurance. Now that your children are grown and you’re focused on preparing for your retirement years, a permanent life insurance policy may better fit your needs. You may want a different limit or a different policy type. The good news is that there’s a wide range of life insurance options available, so you can find one that meets your needs. Contact PTT Financial to learn more.
