Do you still need to take up life insurance after you retire? For a lot of people, life insurance could be deemed unnecessary at this point in their lives. Most retirees who have children may not have to worry about them because they are usually grown and independent.
Social Security, annuities and pensions will provide a great income plan that could help alleviate the financial burden that the lack of a steady source of income will generate. Others may even have healthy investments and retirement accounts. In the event of a premature death, all these options will ensure some financial security for any dependents. If you can guarantee this for your family, life insurance in retirement may not be necessary for you.
If you are unsure about the financial security of your family in the event of your death, life insurance could be ideal. A potentially beneficial life insurance plan that may be a viable option for retirees is the indexed universal life policy, which provides some estate benefits and tax advantages.
What is an indexed universal life policy (IUL)?
Retirees and pre-retirees can increase their portfolio without facing the risk of loss in their retirement. Indexed universal life insurance policies are developed to maximize on the tax benefit under section 7702. This permanent insurance policy will help provide a permanent tax-advantages source of income to help sustain retirees without financial security. The policy also provides other benefits such as coverage against terminal illness long term care, disability coverage and a tax advantage in the event of any estate planning or wealth transfer.