Don't Leave Your Family With An Unwanted Inheritance
North American Precis Syndicate
Understanding life insurance can help you have peace of mind. (NAPS)
(NAPSI)—If you or someone you care about is among America’s
estimated 75 million baby boomers, there are a few financial facts and
figures you should know.
For one thing, middle-income boomers are carrying more debt into
retirement than ever before. So what happens to financial obligations after
death? Life insurance not only helps provide your surviving family members an income after you pass away, but can also be used to pay
According to a recent study commissioned by Bankers Life
Center for a Secure
Retirement, middle-income boomers have lowered their overall expectation for
financial independence in retirement since the onset of the financial crisis
in 2007. Ten years later, fewer boomers expect they will retire debt free (34
percent today, down from 45 percent before the crisis) and fewer have paid
off their mortgages (19 percent, down from 25 percent).
If you have enough assets to cover your debt when you pass away, creditors
will receive their due from your estate. However, it matters whether your
home is your primary asset and whether your spouse or another family member
is a co-applicant or co-signer on an account. Your mortgage and other debts,
such as credit card bills or car loans, could fall to them.
Proceeds from life insurance can be used to pay down your mortgage and
debts, as well as help pay for funerals and other final expenses.
“Carrying debt in your retirement years is very common today, and
life insurance can help provide peace of mind that your family’s
comfort and security are provided for,” explained Scott Goldberg,
president of Bankers Life. “Boomers should do a complete inventory of
their finances and debt, weigh their options, and
find a life insurance policy that will help ease any potential financial
burdens upon death.”
Here are four tips to help you figure out whether purchasing life
insurance is right for you:
1. Determine your need: Does
someone depend on you financially? Are you lacking the funds to cover your
final expenses? If yes, consider life insurance to help protect your family’s
future. A beneficiary can use the money for living expenses or to pay off
2. Understand the different types
of life insurance: There are three major types of life insurance
coverage: term life, whole life and universal life. All three types pay a
death benefit but each can differ in terms of coverage length, premium
flexibility, cash value accumulation and distribution, and other factors.
3. Decide how much life insurance
you need: How much coverage would your family need if something happened
to you? What expenses need to be covered or debts paid off? How much is set
aside for savings? The answers will help you determine the type and amount of
life insurance you’ll need.
4. Consider seeking professional
guidance: Options are available for nearly any income and asset level,
age and risk tolerance. An insurance professional can help you evaluate your
life insurance options and costs based on your needs and circumstances.
to download a free booklet on Top Tips for Retirees including Reducing Debt
in Retirement, Medicare Enrollment, Managing Your Prescription Drug Costs,
On the Net:North American Precis Syndicate, Inc.(NAPSI)