Life Insurance For Empty Nesters

January 27, 2021 16:01 newlambertagency

Many people buy life insurance so that their children have a financially secure future. It offers peace of mind that no matter what, your children won’t have to struggle in absence of your presence.

But about when children leave their nest and parents become empty nesters? Does it still make sense to keep your life insurance coverage when your children aren’t dependent on you?

Granted now you’ll have fewer financial obligations, but that does not mean you don’t require the financial security that insurance provides.

Let’s take a look at why life insurance for empty nesters is important:

Support a surviving spouse

When an earning life partner passes away, the surviving spouse can be left with a lot of financial obligations without any means to meet those debts. The benefits from the life insurance can help your surviving spouse pay off the mortgage and any other large debts, as well as cover any funeral expenses. This not only takes off some financial burden from your spouse but also helps them plan the next move without any pressure.

Support for adult children

Just because you’re children have moved out doesn’t mean they won’t require financial help from you. It’s increasingly common these days to see adult children move back home, relying on their parents for at least a portion of their financial support. In such a situation, life insurance for empty nesters seems like the saving grace that’s got your back. It can be a critical part of your family’s overall financial plan, helping to ensure that their needs are always met.

Provide bequests to heirs

Many people want to leave something for their heir so that they can be financially independent and are not struggling to find their way. If you’re one of those who want to bequeath money or assets to your children or grandchildren, life insurance is the way to go. With the economy forcing the young generation to work twice as hard, your financial support could prove to be extremely beneficial.

Back-up retirement income

When one spouse passes away, the other might see a drastic reduction in pension or Social Security payments and in some cases, may even lose that relied-upon income completely.  Whether a surviving spouse gets pension payments depends entirely on how those benefits were set up in the first place, and all too often those payments stop coming when the spouse who had the pension dies. With the support of permanent life insurance, retirement can be maintained for the surviving spouse so that they don’t face a sudden budget crisis.

Also,

  • Permanent life insurance provides coverage and peace of mind that can’t be outlived.
  • Some policies allow for flexible premiums and death benefits.
  • Policies have a cash value that accumulates over time with the potential to borrow from the cash value.
  • Death benefits are generally tax-free to named beneficiaries in most cases.

These are just a few reasons why having life insurance is important even after kids have flown the nest. If you’re convinced and are looking for ways to enhance your financial security then consult an agent or agency that can help you guide with further steps.