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It may seem simple enough but finding out whether you need life insurance when you retire can be a more complicated process than you think. No one can predict what their life will look like during their retirement years—especially when it comes to their health or finances—but it is possible to start planning earlier in life to help reduce uncertainty in your senior years. Many people prefer to buy life insurance while they are younger, so that they can be prepared for their retirement years. Other people, however, prefer to only buy it when they need it.

The circumstances may vary depending on each person’s situation, but one thing is for certain: life insurance offers many benefits to retired adults. Here are some to take note of.

Benefits of Life Insurance after Retirement

Pay off Debts

Years ago, the tradition was to enter retirement only after all your debts were paid off. However, nowadays, since debt can be abundant for many people, people are bringing debt into their retirement or using their retirement funds to pay off debts that have gotten out of hand. These types of debt can include credit cards and mortgages. The benefit of life insurance in this case is that it can help you pay off those debts when you die, instead of liquidating your assets.

Provide Income for Your Dependents

Nowadays, kids and adults are living at home longer with their parents, so although the plan for retirement isn’t to have dependents, sometimes this is the case. Your spouse, children, or grandchildren may need income when you pass away if you have been providing for them, so life insurance can help you ensure you can meet these needs.

Cover Taxes after Death

After you die, there may be a large tax bill to the estate resulting from income from RRSPs, real estate, capital gains from investment portfolios, and other income sources, all of which are “deemed dispositions” after death. Life insurance helps ensure there is money in the estate to pay for that tax liability. The government will still get their share, but life insurance will help your beneficiaries get more.

Settling Funeral Expenses in Advance

Life insurance helps to ensure that there is enough liquid cash to cover fees and expenses of the estate. Your funeral costs, legal fees, and other expenses can be paid for with your insurance.

Find the Right Retirement Community with the Care Guide

There are so many decisions to make when preparing for retirement, but where you live shouldn’t be a difficult one. There are many options depending on your care needs. You may seek retirement living in Toronto to live with peers and make friends your age, or you may require assisted living to help you deal with health or mobility challenges. Whatever you need, our resource can help you choose the right place for you.

At TheCareGuide.com you will find ideas for retirement homes and checklists to take with you as you shop around. Our guide has helped many customers find the best retirement living options in Ontario, has offered valuable advice on how they can successfully make the transition into a senior living arrangement, and more. To get more information and advice on senior care and living solutions, contact us at 1-800-311-CARE or info@thecareguide.com.


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