As you move into retirement, you might think your need for life insurance will diminish. Your children may be out on their own and you likely have paid down your debt, but there can still be good reasons for people approaching retirement, or who already are retired, to keep or purchase life insurance.

Providing a financial safety net
If your family will lose needed income without you, you still need life insurance to replace that income. While your spouse or family may receive your Social Security benefits, you may be surprised to learn that receiving benefits before their full benefit age will permanently reduce the benefit amount. Likewise, if you have pension payments that assist you with living expenses, check your plan. Some plans cease paying upon your death. You can count on life insurance to replace these sources of income and allow your spouse to continue with the retirement lifestyle you planned.

Life insurance is an important estate-planning tool, and can provide an additional source of funds for funeral expenses, income and estate taxes, or the transfer costs of estate administration.¹

Leaving a legacy
Life insurance can be an ideal way to provide grandchildren with a financial legacy from you. Proceeds can be earmarked for each grandchild to help with college or as a down payment on a first home. Retirement is a good time to review the policies you already have, not only to check or increase benefit amounts, but also to make any beneficiary changes.

Another option is to purchase life insurance policies for your grandchildren, which could help them with college expenses down the road and put them in a better position to get life insurance later. When purchased at a young age, premiums are lower and having the coverage from a young age can help ensure that they have coverage – even if a medical condition prevents them from purchasing additional coverage when they’re older.

Using life insurance to support a charity
Life insurance also can fund a charitable gift. You can honor and support a cause or organization near and dear to you by using life insurance to leave a significant contribution. When structured properly, this strategy also may have tax advantages.

Additional benefits of life insurance for seniors
There are other benefits to having life insurance as you retire. Some policies build cash value that can be accessed in case of an emergency² ― to pay uncovered medical expenses, for example.

To explore how to use life insurance effectively as you plan for and enjoy your retirement, talk with a local Farm Bureau agent today.

¹Neither the Company nor its agents give tax, accounting or legal advice. Please consult your professional adviser in these areas.
²Any loans from the policy’s cash value will reduce the policy’s cash value and death benefit if the borrowed funds, plus interest, are not repaid by time of death.