| By :
Marilyn Katz
Are you planning for retirement? If you are, and especially if your retirement date is drawing close, you may wonder if a life insurance policy should be added to your portfolio. If you already have a policy, you may wonder if you should keep it. Do you need retirement life insurance? There is not a single answer for everybody. The first thing you really need to ask yourself is why you think you may need a policy. There are many reasons that people get covered, but the most common one is to protect people who depend upon your income. You may also have an asset to protect. This could be a house or business. Some people also want to leave money to a foundation or charity. Let us examine the first reason that most people use when they consider buying a policy to cover their life. Are you concerned that your spouse, children, or grandchildren would suffer financially without your income? If you are retired, you may still get a pension, social security or distributions from an annuity. Would these payouts get lower if you passed away? Would the amount from these benefits be enough to give your spouse, or other family members, a comfortable life? Once you have decided if you even have a problem, you need to figure out if a life insurance policy is the best way to solve that problem. A policy will provide a cash payout to your beneficiaries when you die. In order to buy life insurance, of course, you will have to pay for it. Most of the time, that means you will need to pay premiums for many years. Sometimes, you may fund it with larger payments that are only made once. Is this a good idea? Would that money serve your family better if you put it to other use? You may decide, as many others have, that a policy would be the simplest and best way to provide for others after you have gone. Now it is time to explore different types of life policies. If the need for the money is temporary, you may choose to buy term. If you think your need will last forever, you may want to consider a universal or whole life policy. In order to figure out which type to buy, it is important to understand how each kind of life insurance works. How much will your policy cost? The premium will depend upon a number of things An insurance company will consider your age, health, where you live, the type of policy, and how much coverage you need. Beyond that, different companies have different rate structures. To figure out how much you will have to pay for coverage, you will need to compare different policies and insurers. If you need more answers, you may decide to get some help. One way to compare premiums is to use a web based insurance quote system. This will help you discover the different types of plans. It will also tell you how much they will cost. A good insurance agent, experienced in retirement life insurance, can be a great help too!
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