It seems like a blatantly obvious question: what is the right amount of life insurance for senior citizens? Aren’t they one of primary markets as a life insurance agent? However, we are seeing more and more people reach retirement age and decide to stop paying life insurance premiums because the kids are grown up or they don’t need the additional security. Remind your current clients that retirement does not mean the end of dependents or risk. Here are a few tips to use with clients about life insurance after the kids are gone from SilverSide Insurance Marketing.
1. Consider All of Your Dependents
Even though the children are out of the house, think about your spouse! They are going to need plenty of financial protection after your passing, from a loss of investment income to unexpected medical bills. It is on average that Americans spend $60-90,000 a year on medical bills after the age of 65. Having life insurance creates an in-case-of-emergency jar that your spouse can tap into if need be.
2. Avoid Estate Taxes
If you have funds or an estate that would be passed on to your heirs after your passing, life insurance can aid in eliminating (or greatly reducing) any estate taxes that they could face. Heirs usually never pay taxes on life insurance benefits, which is extremely important to consider when planning your estate. A valuable tool is the life insurance trust, which can be made up of a number of products assembled by SilverSide.
3. Your Investments
Even if your starting lineup is made up of All Stars, you still want to have players on the bench just in case. Many retirees argue that the dividends from their investments, IRA, and 401(k) provide them with all the money that they need. But what if the market crashes drastically like the 2008 disaster? A strong life insurance policy could make up any fault in your income after you no longer receive paychecks.
It’s morbidly ironic, but remind your clients that life insurance is not purchased to insure their life.
Therefore, it doesn’t matter their age: it is a necessary security for their heirs and dependents. Marvin Feldman, President and CEO of Life Happens, a non-profit education company says this about the life insurance question. “If you owe somebody or love somebody, the answer is, Yes!”