Monday, August 29, 2016
1012 C Street  •  Floresville, TX 78114  •  Phone: 830-216-4519  •  Fax: 830-393-3219  • 

WCN Site Search


Preview the Paper Preview the Paper

Preview this week's Paper
A limited number of pages are displayed in this preview.
Preview this Week’s Issue ›
Subscribe Today ›

Lost & Found


VideoFound 08/20 on Palo Verde Floresville. The Estates of Eagle Creek subdivision. Please call 210-487-8284 or 210-831-1343. Please help this little one find their home.

VideoLost poodle mix in Sutherland Springs area. Reward. 210-789-0118
Lost: Female German Shepherd, Aug. 13, Oak Hollow and Hwy. 87, La Vernia, mostly black with tan on legs, white on chest. Reward for safe return, call 210-296-1183.
More Lost & Found ads ›

Help Wanted

In-home assistance for mom while I work, she has mild to moderate dementia, 2 shifts needed, 1-6 p.m. and 5-11 p.m.; assist with cooking, taking medications, companionship, light duties, position in Floresville. Call 830-379-2291, leave message if interested.
Your #1 Advertising Resource! Call 830-216-4519.
More Help Wanted ads ›

Featured Videos





Video Vault ›

Savvy Senior


Is life insurance needed in retirement




E-Mail this Story to a Friend
Print this Story

Disclaimer:
Jim Miller is responsible for this content, which is not edited by the Wilson County News or wilsoncountynews.com.
Jim Miller
August 13, 2014 | 2,590 views | Post a comment

Dear Savvy Senior,

Is life insurance needed in retirement? I’m about to retire and have been thinking about dropping my policy to escape the premiums. Is this a good idea?

Over Insured

Dear Over,

While many retirees choose to stop paying their life insurance premiums when they no longer have young families to take care of, there are a few reasons you may still want to keep your policy. Here are some different points to consider that can help you determine if you still need life insurance in retirement.

Dependents: Life insurance is designed to help protect your spouse and children from poverty in the case of your untimely death. But if your children are grown and are on their own, and you have sufficient financial resources to cover you and your spouse’s retirement costs, then there is little need to continue to have life insurance.

But, if you had a child late in life or have a relative with special needs who is dependent on you for income, it makes sense to keep paying the premiums on your policy.

You also need to make sure your spouse’s retirement income will not take a significant hit when you die. Check out the conditions of your pension or annuity (if you have them) to see if they stop paying when you die, and factor in your lost Social Security income too. If you find that your spouse will lose a significant portion of income upon your death, you may want to keep the policy to help make up the difference.

Work: Will you need to take another job in retirement to earn income? Since life insurance helps replace lost income to your family when you die, you may want to keep your policy if your spouse or other family members are relying on that income. If, however, you have very little income from your retirement job, then there’s probably no need to continue with the policy.

Estate taxes: Life insurance can also be a handy estate-planning tool. If, for example, you own a business that you want to keep in the family and you don’t have enough liquid assets to take care of the estate taxes, you can sometimes use a life insurance policy to help your heirs pay off Uncle Sam when you die.

It’s a good idea to talk to a disinterested third party (not your insurance agent), like an estate planning expert or a fee-only financial planner to help you determine if your life insurance policy can help you with this.

Life Settlement Option

If you find that you don’t need your life insurance policy any longer, you may want to consider selling it in a “life settlement” transaction to a third party company for more than the cash surrender value would be, but less than its net death benefit. The best candidates are people over age 65 who own a policy with a face value of $250,000 or more.

Once you sell your policy, however, the life settlement company becomes the new owner, pays the future premiums and collects the death benefit when you die.

How much money you can expect to get with a life settlement will depend on your age, health and life expectancy, the type of insurance policy, the premium costs and the value of your policy. Most sellers generally get 12 to 25 percent of the death benefit.

If you’re interested in this option, get quotes from several brokers or life settlement providers. Also, find out what fees you’ll be required to pay. To locate credible providers or brokers, the Life Insurance Settlement Association provides a referral service at lisa.org.
 
‹ Previous Blog Entry
 

Your Opinions and Comments


Be the first to comment on this story!


You must be logged in to post a comment.




Not a subscriber?
Subscriber, but no password?
Forgot password?

Savvy Senior Archives


Resource Links savvy senior
Savvy Senior blog bio side
Friesenhahn Custom WeldingAllstate & McBride RealtyHeavenly Touch homeTriple R DC ExpertsVoncille Bielefeld home

  Copyright © 2007-2016 Wilson County News. All rights reserved. Web development by Drewa Designs.