Lifepoint Financial Design – LifePoint Financial Services – Mike Metzger Financial Planning

Retiring Soon? Look at our life insurance as you head into retirement, it makes sense to reevaluate your insurance coverage and make sure it’s sufficient.

Now that you’re about to retire, it’s an excellent opportunity to take a fresh look at your life insurance coverage. It might be that you can give up a policy or two, or that you can change your coverage to better match your circumstances.

How Has Your Situation Changed?

If you have policies dating back to when you were raising children, you might find that your adult children no longer need your insurance proceeds and investing the premium for your own well-being may be a better option. However, if you are still paying off debt, it may make sense to keep your life insurance until you are debt free.

Check Your Surrender Values

The premiums you save by giving up old insurance policies are not the only benefit. If you’ve had your policy for a long time, you might have built up a considerable surrender value, which is a partial refund of your premiums. This can potentially free up some cash that can be invested.

Using Insurance for Estate Planning.

Many people aren’t aware of the many ways life insurance can be used for estate planning. You can set up insurance-based trusts that may save you taxes both now and later. Using insurance for trust planning is an important—though confusing—topic, but I can help answer your questions and offer suggestions to address your stated goals.

Don’t Quit Insurance Policies Without Understanding the Consequence.

You may be thinking about the expense that you will be saving by no longer paying those insurance premiums. But remember some of those policies were issued years ago when you were young and healthy. In other words, if you try to reapply, you will receive rates and premiums for your current age and health. Before you quit a policy, make sure you run a full costs and benefits analysis to determine the needed insurance. Quitting a policy may not be reversible and other options exist. Talk to me to have a complete analysis of existing coverage and needs.

The cost and availability of Life Insurance depend on many factors such as age, health, and amount of insurance purchased. In addition to premiums, there are contract limitations, fees, exclusions, reductions of benefits, and charges associated with policy. And if a policy is surrendered prematurely, there may be surrender charges and income tax implications. Any guarantees are contingent upon the claims-paying ability of the issuing company


Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

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