When their children move out, many empty nesters may be left wondering whether they should change or cancel their term life insurance policy. However, before cancelling term life insurance, there may be some important considerations to keep in mind before you might attempt to change or end your policy. A good place to start may be to look at term life insurance.
According to a report on PR News Wire “Life Insurance Considerations for Empty Nesters,” people are generally living longer and retiring later. Many households have two incomes. People with empty nest homes may still have large financial obligations even after their children leave or they retire. They may not be able to maintain their lifestyle or expenses if their partner were to get sick or die. Hence, they may continue to work past retirement and many couples plan on working longer instead of saving more. Visit this page on over 50 life insurance to learn more.
While more people plan on working in retirement to cover expenses, their insurance policies for whole and term life insurance may have also been modified. A study by Matthew Greenwald & Associates, Inc. and the Employee Benefit Research Institute discovered that the percentage of workers who plan on working when they are senior citizens increased to 74% and that workers with less than $100,000 in savings were unsure whether or not they could maintain and meet their financial needs after retirement. Policies like term life insurance may thus be considered important options for empty nest households. You can read more about term life insurance in the article “Benefits of Term Life Insurance”. <hyperlink: article 65>
Since life insurance may help protect your retirement savings for the security of your beneficiaries, you can hopefully pass on your estate to your beneficiaries. In fact, there are many options in both whole and term life insurance policies for couples of retirement age. You may need to reevaluate your options and needs as your children mature and leave the nest.