Life insurance is part of financial planning over a lifetime for most people. When you retire, you may have decreased income and be looking for ways to lower your expenses. You may be thinking that stopping payment on your life insurance will help with your finances. While it may save you a little bit of money, it isn’t necessarily the best thing to do. Speaking to a knowledgeable agent like those at EasTex Insurance in Tyler, TX can help you to understand the implications to your overall financial health of getting rid of your life insurance policies.
Depending on the type of life insurance policy that you have, it may have accumulated cash value. If you just stop paying your premium with a term policy, you will lose your coverage and have no money to show for. With a whole life policy, you have several options. You can cash in the policy for the accumulated cash value, or you can take a loan from the policy. With a whole life policy, even if you stop paying, you should be able to collect on the value that you have accrued.
Just because you have retired doesn’t mean you don’t need life insurance. If you have someone dependent on you, providing for them after you are gone is something to consider. You may also want to leave a legacy to your children, grandchildren, or even great-grandchildren. One other thing to consider is whether or not you have set aside the money to pay your final expenses.
The answer to the question "Do I need life insurance if I am retired" is it depends on several factors. It is something you should discuss with your financial or insurance professional. Why not make an appointment to discuss it with the team at EasTex Insurance in Tyler, TX.