Brokers AllianceThe usual consensus is that your clients who are close to retirement (or are already retired) don’t need to purchase life insurance. However, we know that insurance is not a one-size-fits-all scenario. Although clients see retirement as the financial end-game, there are still certain exceptions where having a life insurance policy through retirement makes sense:
1. Poor Health - Fidelity Investments estimates that a 65-year-old couple who retired in 2016 would need $260,000 of their own savings to handle 20 years of out-of-pocket retirement health costs. If clients are going into retirement and they believe they’ll have health issues arise in that time, a term policy with living benefits can help pay for health expenses later on.
2. Longevity - According to data collected by the Social Security Administration, about one out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95. With numbers like that, it certainly adds value to the argument that a diverse portfolio that includes cash value life insurance could be a good option for some folks.
3. Long Term Care - Based on a report from AARP, the lifetime probability of becoming disabled in at least two activities of daily living or of being cognitively impaired is 68% for people age 65 and older. By purchasing a hybrid life product with long term care options included, clients can safeguard themselves from the bulk of costly LTC fees in their retirement age.
