Life insurance
Many retirees with a spouse or children to whom they would like to bequeath money quickly assume they need a life insurance policy. In fact, there are several common and valid scenarios for purchasing a life insurance policy:
- If you are the main breadwinner or are currently supporting family members (such as a spouse, children, parents, etc.).
- If you are a stay-at-home spouse who provides services such as child care, cooking and cleaning.
- If you want to make sure an illness or injury on your part does not wipe out your retirement savings for your spouse.
- If your death may result in your spouse losing out on retirement benefits being paid only to you.
- If you have a large estate (generally over $1 million) and want to lessen the impact of estate taxes or transfer more wealth to your heirs.
