Life insurance considerations for empty nesters Osceola Sentinel Tribune
Once your children have left the nest, a lot of things will change. You will find your grocery list looks a lot shorter, your electric bill a lot brighter and your water bill requires fewer liquid assets to pay it each month. But what does that mean for your life insurance?
Should your life insurance coverage look different when you no longer have kids in the roost? The answer is: it depends.
When you initially purchased your life insurance policy, you determined the death benefit that best fit your needs at that time in your life. Your death benefit may have included enough funds to pay off your mortgage, pay your children's tuition costs, pay off credit card and personal debts, and generally provide for your family when you no longer could. But how much of that death benefit is still necessary now that the kids are out of the house and on their own? The answer to this question depends on several factors.
1. What is your current debt? If your debt is the
Whole Life insurance is a combination of life insurance with an investment component that adds up to creating a cash value that can be withdrawn later in life. While the life insurance part of a Whole Life policy is self explanatory, the added investment component has some variables. You set when you would like to start taking the cash value payout of a Whole Life Insurance policy. While the premiums for a Whole Life Insurance policy is typically higher than a Term Life Insurance policy, the higher premiums go towards the cash value (investment component). Let’s say at age 63 you would still like to collect a paycheck without working. You can set your Whole Life Insurance policy to payout a given amount at age 63.
Term Life Insurance is an insurance policy that provides death benefits only. Meaning this is for the love ones you leave behind. The premiums are low compared to Whole Life Insurance because there is no investment component to a Term Life Insurance policy. Term Life Insurance policy terms can vary, but some go up to 35 years.![Madoff's Sentence Forbes]("http://nt3.ggpht.com/news/tbn/RyEpctTTX6zlrM/6.jpg")
ForbesMadoff's SentenceForbesFor many middle-age convicts that's a life term. The New Yorker got 845 years from a Florida federal judge in 2000, plus a demand for $300 million in fines and more »
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Examiner.comLife insurance 101Examiner.comUnlike term insurance, whole life provides coverage for your entire life. Your premiums are higher than those for term life because part of each payment and more »
