Do You Need Life Insurance Plan for Retirement?

Having a life insurance plan for retirement is one of the corner stones of any sound financial plan. While imagining our own death is not something that anyone likes to consider, you need to put aside your personal feelings and think about the people that are depending on you. Even when you are gone those people will still need to make up the income that you are providing for them and that’s where life insurance comes into play.

Life insurance is most important while you are still working, and becomes less important once you have eventually retired. The reason for this is that after retirement you should have all of the money that you need to provide for those around you. This of course depends on your individual situation and you should consult with a financial advisor on the financial needs of your dependents and if life insurance will still be needed.

Do You Really Need Life Insurance?

Depending on who you talk to you will hear varying opinions, but if you are the main income earner for your family you really need to look into your options if you are without a life insurance policy. Depending on the type of insurance policy you choose you may also be able to cash out your policy when you retire, which will give you some extra income after your need for life insurance has passed.

How Much Life Insurance Do You Need?

This will vary wildly depending on your individual situation, but the main factors that will affect how big your life insurance policy should be are:

  • Your age
  • Your current net worth
  • How many dependents you have
  • Your family’s monthly budget
  • How much extra money you would like to leave

Once you have a good idea of what the needs of those who depend on you will be from today to some future point you will be able to come up with a number that will adequately provide for them.
If you would like more information on a life insurance plan for retirement, or other retirement related income questions, please visit the Aviva Life Insurance Page

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