5 Reasons why you should keep your life insurance even after retirement

As the Baby Boomers are nearing their retirement, many are thinking of shredding expenses that they consider as burdensome, oppressive and fruitless, which include cost for life insurance too. For many, the kids are already grown up and the college expenses are taking a toll on their financial health. Whatever it might be, no earthly argument can be strong enough to support the decision of abandoning your life insurance coverage. In fact, as you approach the blissful days, you would find more reasons to not to, rather add to your life insurance policy. Here are 5 key reasons why:

1. Bearing final expenses: Though nobody can’t escape this, many just avoid thinking about it. Most of the people just have no idea how expensive it’s even to die. While you don’t like talking about it, if we take into consideration the cost of a casket, burial plot, headstone, transportations, flowers, and the services involved, the average cost of a funeral can run up to $10,000 or even more. This amount is undoubtedly hefty and nobody would want to leave his/her spouse, children or loved ones to bear this expense. So covering it up with life insurance is clearly a good idea.
2. Supplementing or replacing income: If you are married, the after-retirement benefits that you receive might reduce substantially if one of you passes away. This thing is true with many retirement plans out there. If, unfortunately, such a mishap happens, the survivor would be forced to live a minimalistic lifestyle, including selling the current home and moving to a much small home.If a life insurance policy is in place, all your worries could resolve. Upon your or your spouse’s demise, all the proceeds of the policy could be converted into a monthly income stream, which can help you replace the income that is lost.
3. Paying for the estate taxes: You might surprise at this, but you could owe money to Uncle Sam even after your death. And if you don’t leave sufficient funds to tackle this potential debt, your near ones might be forced to sell off your assets or other ancestry valuables at a much lower price just to pay off the debts accrued.If a life insurance is in place, it can certainly relieve the descendants from paying what you owed on estate taxes.
4. Equalizing an inheritance: Life insurance can also be a means to prevent any dispute among the offsprings by equaling out an inheritance. For instance, if a business owner has three children and two inherit the business but the other guy has no interest in the family business, the life insurance can come in rescue by offering the third child an amount that is equivalent what each of the other two receives.
5. Instrument of charity: As people near their retirement years, many feel the urge to do something for the betterment of the lives of others and desire to leave funds to a charity or similar organizations. A life insurance can offer an ideal platform for doing this, as well as impart a number of tax benefits to both the donor and the beneficiary.

Whatever your age or financial status might be, if you really care about your loved ones and the inheritance they are supposed to receive, it’s very important that you include life insurance as a significant part of your overall financial plan.