We have so many things to worry about when we get older. As time flies by quickly, the pressure of keeping up to enjoy the future gets harder and harder. Some of us even tend to live by day, not thinking much of the future because what we have in the present seems hard enough to carry.
The question thrown: Why do I need insurance when I retire?
The answer is simple: do you have any loved ones? Of course you do.
Now, let us review to the basics and details of it.
Axis Capital, with a group of insurance and reinsurance companies based in Bermuda and offices in Australia, the United Kingdom, Singapore and over 10 states in the United States emphasizes the importance of insurance for retirees, even when you think you don’t need it anymore.
1. Source of Income
We all know that even if you retire, you would still have to take care of your own needs. You don’t want to depend entirely on your children, do you? Some children and grandchildren may be the ones to depend on you even if you retire. And of course, you can’t just turn your back from them. Life insurance can provide funds that you need.
2. Something to Leave Behind
We cannot deny that we will all be gone from this world. Do you have something to leave behind for your children or their education?
Many retirees from close family-knit cities like Jakarta, Indonesia and Singapore turn to insurance in fear that their children would not be able to survive after they pass away. Life insurance is mostly important children with special needs as well to get them by when you are already gone.
3. You have a pension that dies with you.
If you have a pension with no survivorship option, how do you replace that income stream for your spouse? Once again, life insurance can replace the lost pension income by creating the assets that can be turned into an income stream.
4. Pay your debts
During the times that you are still working and active, there may been debts that you were not able to pay. According to some reports, most retirees have installment and education debts which remain unpaid. Some also have vehicle loans. Many retirees still have mortgage debt. You wouldn’t want to face files of complaints, would you? Life insurance can make sure these debts are paid off at the debtor’s death
5. You’d like to leave a legacy.
Life insurance is a very efficient tool to use for estate planning and the equalization of assets being left to heirs and for charitable planning. A small premium for life insurance can create the money at death to accomplish these goals.
Another option is to get insurance while you are still young. Be smart enough and enjoy a tax-free income stream in retirement from the cash-value of your policy.