Term Life Insurance After Retirement

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GS
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Term Life Insurance After Retirement

Post by GS » Mon Dec 18, 2017 3:01 pm

For those members who are retired, do you still keep a Term Life Insurance Policy in force and if so, why?

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David Jay
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Re: Term Life Insurance After Retirement

Post by David Jay » Mon Dec 18, 2017 3:04 pm

NO.

1. My portfolio is adequate to maintain my wife's lifestyle after the drop in SS benefits.
2. Term life gets frightfully expensive in your 60s and 70s.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

dbr
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Re: Term Life Insurance After Retirement

Post by dbr » Mon Dec 18, 2017 4:33 pm

Yes, reduction in certain income streams on my demise justifies some amount of insurance. This eventually goes away as the remaining life expectancy dwindles. One must also make some estimates of how expenses might change.

In out case the alternative would not be a big deal respecting either the replacement of income or the cost of the insurance.

John Z
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Re: Term Life Insurance After Retirement

Post by John Z » Mon Dec 18, 2017 4:44 pm

No. Retired for 5 years. 10 years prior to retirement didn't need the full coverage term we had so we reduced the insurance coverage by 50% which also lowered our premiums by the same percentage. When we retired we stopped the insurance.

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bengal22
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Re: Term Life Insurance After Retirement

Post by bengal22 » Mon Dec 18, 2017 4:45 pm

No need for life insurance in our case.
"Earn All You Can; Give All You Can; Save All You Can." .... John Wesley

MikeG62
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Re: Term Life Insurance After Retirement

Post by MikeG62 » Mon Dec 18, 2017 4:45 pm

No, I do not.

DW will do just fine should I predecease her. No need to continue to carry and pay for TLI.
Real Knowledge Comes Only From Experience

bikechuck
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Re: Term Life Insurance After Retirement

Post by bikechuck » Mon Dec 18, 2017 5:58 pm

My wife and I stopped paying for term life insurance in our younger 60s a couple of years before we retired.

The nest egg is hopefully large enough to take care of ourselves after one of us passes (likely me first). The premiums were rising and we saw no need to continue incurring the expense.

adamthesmythe
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Re: Term Life Insurance After Retirement

Post by adamthesmythe » Mon Dec 18, 2017 6:10 pm

No. No kids, wife works. The only life insurance I ever had was the default through work.

Broken Man 1999
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Re: Term Life Insurance After Retirement

Post by Broken Man 1999 » Mon Dec 18, 2017 6:18 pm

When I reach 65, my MegaCorp life insurance will drop from $70.000 or so to $5000. It is a benefit, not paid by me.

When wife was 50 I bought a 20 year term insurance policy for $530/year. I'll continue paying until it reaches the full 20 years. If something happened to my wife, I would need live-in coverage at night.

Broken Man 1999
“If I cannot drink Bourbon and smoke cigars in Heaven than I shall not go. " -Mark Twain

cadreamer2015
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Re: Term Life Insurance After Retirement

Post by cadreamer2015 » Mon Dec 18, 2017 7:13 pm

I have 2 months left on a 10-year level premium term life insurance policy. I kept it in force after semi-retiring 2 years ago, in part because it is now an actuarially a favorable bet. Also I wouldn't want my DW to think poorly of me if I dropped the policy and dropped dead before the policy would have terminated. But I will not purchase any additional term life when this policy expires.
De gustibus non est disputandum

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Steelersfan
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Re: Term Life Insurance After Retirement

Post by Steelersfan » Mon Dec 18, 2017 7:39 pm

If you have enough assets (or what you have plus SS and maybe a pension) is enough for your wife to live on comfortably, then drop it.

That's what I did, actually even before I retired.

technovelist
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Re: Term Life Insurance After Retirement

Post by technovelist » Mon Dec 18, 2017 7:44 pm

GS wrote:
Mon Dec 18, 2017 3:01 pm
For those members who are retired, do you still keep a Term Life Insurance Policy in force and if so, why?
Yes, because the value of the social security benefit that would be lost if I died is hundreds of thousands of dollars.

Thus, insuring against the loss of that benefit makes sense.
In theory, theory and practice are identical. In practice, they often differ.

Ron
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Re: Term Life Insurance After Retirement

Post by Ron » Mon Dec 18, 2017 7:48 pm

While my wife would certainly have more than enough in our joint portfolios to live out her life with no money problems, she does not take care of managing the underlying investments.

Due to that fact, I still hold a term policy that will give her enough immediate tax-free income to cover a year of expenses and give her enough time to either become comfortable with managing what would be her total portfolio, or enough time to make decisions to get somebody else to manage her holdings.

- Ron

Independent
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Re: Term Life Insurance After Retirement

Post by Independent » Mon Dec 18, 2017 8:44 pm

No

When I die, about one-third of our combined expenses die with me.

My wife will get about two-thirds of our combined income (pension + SS), and will get 100% of our assets.

No need for life insurance.

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