Life insurance is a prime focus for many who wish to leave their families financially stable after their passing. However, suppose that you are close to retirement, have adequate retirement savings and have no dependents. Should you keep your term life insurance or is it not worth the cost?
If there is truly no one who is financially dependent upon you, then life insurance is often an unnecessary expense. But you should first be absolutely sure that this is the case. Chances are there is someone in your life that could greatly appreciate some temporary help after your passing.
You also need to make sure that your savings truly are “adequate.” Do you have enough to cover emergency situations, or other unforeseen expenses? Have you considered the cost of your funeral and other final expenses? Currently, the average funeral costs anywhere from 7,000 to 10,000 dollars. This does not include other expenses that your family might incur from your passing. If you do not have the proper amount of money saved or life insurance, it could cause problems for those you leave behind.
If you are sure that you do not require life insurance anymore, you should look at your options for long-term care insurance. As you age, there is a high probability that you will need long-term care for at least six months. These policies allow you to receive government assistance, including long-term care, while protecting your assets.
Overall, every situation is different, and there is no single answer as to whether or not term life insurance is right for you. In the end, this is an issue that affects you as well as your loved ones. You should discuss this decision with your family and, if possible, experts such as a long-term care insurance specialist.