Term Life Insurance Articles
Why Empty Nesters Still Need Life Insurance
2010-01-26
While most "empty nesters" may believe in not having the need to have coverage or not ever having to pay life insurance premiums once their kids have flown the coop, there are still considerable reasons why you would opt to own a life insurance policy. To have an estimate in how much life insurance you will need, simply add how much income you make to how much your spouse will potentially receive in retirement in the event of your death. Should your pension, assets, and cumulative savings be insufficient, you really have to consider purchasing insurance. Contact an insurer to get a term life insurance quote now.
One important benefit of having life insurance as an "empty nester" is the safety net it provides. We all believe in the old adage of saving for the rainy days - an emergency fund that consists of about 50% of a year's income to support unavoidable expenses. But what if you do not have an emergency fund? Post-death, your family may suffer the financial burden of making ends meet. Life insurance is the right solution for this. Life insurance policies will bridge the gap for the missing retirement savings should there be premature death or when Social Security payments haven't kicked in yet. Insurance gives your dependents the capacity to pay for financial responsibilities such as mortgage, car loans, home equity loans, as well as medical expenses.
Another reason to obtain insurance is to have the ability to support your dependents. If you are supporting elderly parents, or are taking care of dependent children, owning life insurance will give you the means to continually support them if you die prematurely. By continuing to pay for your term life insurance premiums, you assure financial support for your loved ones. Children rarely plan to save money for funeral and burial expenses, medical expenses, estate costs, and income taxes. And if your children are not yet financially independent, life insurance will cover these costs.
Most couples who both earn monthly income, will have several financial responsibilities such as mortgage, leases, loans, etc. based on their combined income. Individual life insurance will give each policy holder the capacity to continue fulfilling these obligations after the occurrence of death. When a spouse dies, retirement benefits will continue for one but the second income will stop, causing a reduction in overall income. Insurance can support this drop in income. Also, if you want to ensure that your heirs or favorite charities will continue to receive support after your death, you may allocate some of your insurance benefits to them. Empty nesters do really need life insurance in order to ensure dependents, and other beneficiaries are provided for.
