Is Life Insurance an Available Option Once I am Retired?
I was recently asked by a client if they could purchase a life insurance policy after they retired. They were concerned as they no longer had an income from their employer and didn’t know if they could afford a policy. I asked them if their group life insurance policy through their employer was included in their retirement package. I advised not all companies provide this benefit to their retirees. In this particular case, the client’s group insurance policy was not included in their retirement benefits. Chances are, if you are receiving some type of retirement income, whether it is from social security, pension fund, 401K etc., these funds can pay the premium on a term life insurance policy.
Purchasing a term life insurance policy at age 65 can be affordable. For a Male at the age of 65, the cost for a $100,000 10 year term policy at preferred rates is approximately $65 per month. For a Female at age 65, the cost for the same $100,000 10 year term policy at preferred rates is approximately $45 per month. Your medical history, in conjunction with the insurance carrier’s underwriting decision, will determine what the final rate will be. You are probably spending more on your take-out coffee per month than what it would cost for a term life insurance policy.
Even though you are retired and your expenses and/or debt are lower than they were 20 years ago, having adequate life insurance coverage is important. If you pass away before your spouse, you will want to make sure they can continue to live in the same lifestyle that they are accustomed to. In my opinion, the $65 per month in premium is worth the peace of mind knowing your loved ones are taken care of.
About the author: Teri Costen has been in the life insurance business for over 20 years. She is a mother of three who enjoys working out, taking aerobic kickboxing classes, and making stained glass. Teri believes that finding the right life insurance policy helps protect your family and loved ones. You can contact Teri at 1-800-651-1953 or TCosten@Pivot.com.