If you are like a lot of people you might be thinking once you retire, you don’t need life insurance, right? Not so fast!
The traditional thinking about life insurance is that you only need it when you have an income to protect, when you have a mortgage, or when you have kids to support.
Those are all valid reasons to have life insurance, but there are also some good reasons to have it after you retire.
Supplement your retirement income. Permanent life insurance not only provides protection if you die but also accumulates cash values that can be tapped into as a supplement to retirement income.
Transfer wealth. Life insurance can be an efficient way to transfer wealth to your heirs while avoiding inheritance taxes. While the federal exemption for estate taxes has been raised to $5.49 million for 2017, there are still state inheritance taxes to consider.
Of course, such policies have to be set up correctly. Life insurance benefits are generally free of income tax, but they are still subject to inheritance taxes if they are owned by the insured. That is, if you own a policy on yourself, then it is considered part of your estate.
Here are a few examples of how permanent life insurance can be used to transfer wealth to your children or grandchildren:
These are complex matters, so you may want to discuss these items with your financial and legal advisors to determine what post-retirement life insurance strategies make sense for you.
For more information on how life insurance can benefit you in retirement, contact your Western Fraternal Life insurance agent or the Home Office at 877-935-2467 or firstname.lastname@example.org.
CLU, CRPC, CLTC Sales and Marketing Manager
Call 877-935-2467 to speak with a Western Fraternal Life Representative.