I’m 50 Years Old. Should I Keep My Life Insurance?
Of all our purchases, life insurance is one product we hope we will never have to use. When you were young and saddled with responsibilities, you made the smart decision to purchase life insurance to protect your loved ones. Now that you’ve reached middle age, your financial responsibilities have likely changed.
You may be questioning if it is worthwhile to continue paying those monthly or annual life insurance payments. Of course, answering that question is as much a personal question as it is a financial one. But there are six reasons you may wish to continue submitting those insurance premium payments.
- Child Expenses – Life insurance can secure your children’s educational future if they are still in school or expect to pursue post-secondary education.
- Debt Payments – Most outstanding debts will transfer to your estate and will be paid with any assets left behind. This includes your mortgage, auto loans, and any unsecured debt you may carry now or in the future.
- Income Replacement – If your partner’s standard of living is supported by your current income or will be during retirement, life insurance will replace the monthly income lost after your passing.
- Business Buyout – If you are an owner of a business, your spouse or estate will become the new partner after your passing. Life insurance can provide the funds necessary to fund a buyout (note, this type of insurance is usually owned by the corporation).
- Leave a Legacy – Do you have a favorite charity, school, or religious organization you would like to support? Life insurance can leave a lasting legacy in your name.
- Final Expenses – As the cost of living goes up, so too does the cost of dying. The average funeral costs between $7,000 and $12,000, which would need to be paid out of savings if life insurance isn’t in place.
Buying life insurance protects those you leave behind and is considered one of the most selfless purchases you will ever make. To learn more about your life insurance options after 50, contact my office today to schedule a call.