Do retirees need life insurance in retirement? I would say, “yes” and “no.” It depends and that’s a good question. I can tell you what you want to think about if you are a retiree in retirement, is not so much do you need it, but do you want it? Right? Because a lot of our clients have several million dollars saved and they have built a great portfolio. And you know, yes, they may not need life insurance as much as they did when they were in their 20’s, 30’s and 40’s with young families and a lot more risk on the line.
However, if you want life insurance in retirement, that’s a different story. And I would say, a lot of our clients do want it. And here’s why, life insurance today is extremely valuable in that it can be used in many different ways. For example, it can be used for long-term care, it can be used for critical illness, it can be used to build tax-free cash values if structured properly. And then, one of the greatest things about life insurance is that the death benefits are totally tax free. So when your heirs receive the proceeds they’re free from federal income tax. So, you, know, the question is do retirees need life insurance in retirement? It’s “yes” and “no.” Can tell you a lot of our clients want it for all the things it can provide them during their lifetime and all the things it can provide their heirs when they pass on.