Adjusting your life insurance coverage as you age

Life insurance still matters, even after you retire, but your needs can change over time. Whether you’re experiencing a life change, such as retirement, or just want added peace of mind, it’s a good idea to review your life insurance coverage to ensure it still makes sense for you. Below are a few considerations for keeping your life insurance up to date.

Life events and insurance coverage

When major life events happen, it’s a good time to review your life insurance. Becoming a caretaker, health changes, and loss of a spouse are all indicators that it may be a good time to re-evaluate your coverage. It’s important to note that positive things—like paying off debt or becoming a grandparent — can also affect how much coverage you may need.

Term life vs. whole life

It’s helpful to know the difference between term life and whole life. Term life is generally less expensive initially and lasts for a limited time. Whole life, on the other hand, lasts your entire life and builds cash value over time. Some people choose a combination of both types to meet different financial objectives.

Your beneficiaries and legacy

Life insurance is a good way to leave a gift to people and causes you care about. You can assist your grandchildren with college or trade school, give to a charity you’re passionate about, or help your family beneficiary list is current.

Policy features

Check out the features of each type of coverage. Some life insurance coverage may offer features such as building cash value for whole life coverage,forgoing medical tests, and early access to your benefit if you become seriously ill.

Talk to a financial expert

A financial advisor can explain your options and help you find the best life insurance coverage for your situation. Life insurance is just one piece of a financial plan. Getting expert advice can help ensure that your coverage supports your overall goals.

Some people think they don’t need life insurance once the children have moved out and the house is paid off. However, life insurance for older adults can still be worth having and can make a difference. Take time now to review your coverage.

 

This article is provided by New York Life for informational purposes only. Neither New York Life, AARP nor its affiliates provide tax, legal, financial or accounting advice. Please consult your own professional for advice specific to your circumstances.