Life Insurance Strategies: Three Reasons Empty Nesters May Want Permanent Coverage

Posted on 9-26-2019

Parents with young children might worry about whether they have enough life insurance to take care of their family’s financial needs if they should pass away.

But as their children grow into self-supporting adults, they might start to consider whether they still need life insurance at all.

This week, Craig Siminski, of CMS Retirement Income Planning, shares some important considerations for Empty Nesters:

A whole life policy typically provides a permanent death benefit, as long as the premiums are paid to keep the policy in force. A portion of the insurance premium goes into a cash-value account, which accumulates on a tax-deferred basis.

Not only could this increase the death benefit, but it provides some financial flexibility because you can tap into the cash value during your lifetime.

Here are three reasons why a permanent policy could play an important role in your long-term financial plan:

1. Protect Your Spouse

Regardless of your age, your spouse might depend on your income, especially if you are still working and/or have a mortgage that could be paid off with a life insurance benefit. If you are already retired, losing one spouse’s Social Security benefit could also make it difficult for the surviving spouse to continue paying the same fixed living expenses, despite any survivor benefits. Even if your surviving spouse can count on a similar retirement income, he or she may …

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Craig Siminski is a CERTIFIED FINANCIAL PLANNER™ professional, with more than 21 years of experience. His goal is to provide families, business owners, and their employees with assistance in building their financial freedom.

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