Should Working Baby Boomers Have Life Insurance?
The increasing number of older adults continuing to work reflects in part a need for steady income. How does this play into the decision on retaining life insurance?
In today’s economy, baby boomers are working longer than ever to keep up with their cost-of-living needs and delaying retirement for several years longer than they once did. If you’re among them, you may wonder if you need life insurance. Take a look at your overall financial situation, and what your employer already offers, and answer the questions above to see where you stand. It may be time to purchase a supplemental insurance policy to ensure your family is taken care of no matter what the future holds.
There are many factors involved in answering how much life insurance you need. First, consider whether your employer provides group term life insurance, which is typically a free benefit to employees. But such policies are often capped at $50,000,2 and it’s unlikely you can take it with you when you retire.
You may be able to purchase supplemental life insurance from your employer as well, but the cost may increase every five years.3
Other factors in the decision about purchasing life insurance for baby boomers include whether you currently carry a mortgage, are repaying student loans or have additional debt – all responsibilities that you don’t want to leave behind for your loved ones to handle. Consider credit card payments, car loans and your children’s education when you tally your needs.
Another important question is what your health is like today. Purchasing life insurance policies can be less expensive when you’re in better health, so it can be beneficial to get your policy sooner rather than later.
- Labor Force Projections to 2024: The Labor Force Is Growing, but Slowly, Bureau of Labor Statistics, 2015.
- Group Term Life Insurance, 360 Degrees of Financial Literacy, 2017.
- Is Your Employer-Provided Life Insurance Coverage Enough?, Investopedia, 2014.
- Actual term period available is based on the insured’s age at time of application.
- 2016 Amica Life Financial Peace of Mind Survey, 2016.
- Financial Security and Peace of Mind Are More Important Than Ever, The American Council of Life Insurers (ACLI), 2015.
- How to Save Money on Life Insurance, QuoteWizard, 2017.
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