Ready to retire and let go of that Life Insurance? Think again

Enjoying Retirement

I had a friend tell me recently she is retiring. Their 2 kids are grown, one in college and the other married. They have no mortgage, limited expenses, and a good size nest egg. In her words “Now it’s time to start living”. I was so happy for them and even a little envious. In the course of the conversation she mentioned they planned to drop all of their life insurance, they had plenty to self-fund funeral expenses. I was truly alarmed to hear this. Being in the life insurance business I have seen and heard it all. I strongly suggested she think long and hard before taking that step. Even though they can live a comfortable life style given their current situation, there are circumstances beyond their control that might eat into that next egg quickly. I gave her a number of things to consider. They included:

  1. You still have one child in college and those associated expenses, which are significant.
  2. What if one of you passed after an extensive illness, generating high health care costs. How will you pay for that? What happens to your nest egg?
  3. What if one of you needed long term care. Have you planned for this possibility? How will you fund that? Again, what happens to your nest egg?

I think I gave her some things to think about and helped her realize that their nest egg could be gone in a flash. I caught up with her several months later and she told me they intended to keep the life insurance and thanked me for sharing some of my thoughts on the topic.

What’s the message in all of this? Life insurance offers protection and peace of mind to help all of us weather the unexpected storms life can sometimes bring. Now we can enjoy life to its fullest.

About the author:  Michele Cleary has been in the business for over 35 years and holds a CLTC designation. She believes that life insurance can give you and your family peace of mind, especially when you have other things to worry about. Michele now has 4 grown children and knows that proper planning is essential. You can reach her at 1-800-651-1953 or MCleary@Pivot.com.