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Why take out life insurance after age 50?
By Beneva*
You’re in your 50s. Should you take out life insurance or is it too late?
Does life insurance after 50 make sense? Here are a few points you can discuss with your SSQ financial security advisor.
Retirement means you are no longer covered by your group insurance
It’s not uncommon for a group insurance plan to include a life insurance component in which a percentage of your salary is used to calculate the insured amount.
Once you retire, you can lose this life insurance coverage.
Why not use this opportunity to review your current life insurance coverage? This way, you can be sure to get the coverage you will need in the future.
Don’t leave your debts behind
Upon your death, many fees will have to be paid by the estate, in addition to funeral expenses:
- Mortgage loan
- Credit cards
- Line of credit
- Taxes
- Notary fees, Legal fees
- Etc.
With life insurance coverage, you won’t need to leave your debts for your heirs to pay before the estate is settled, a process that can take several months, even more than a year.
With the tax-free amount your life insurance beneficiaries will receive, they maintain their standard of living once they stop receiving the income your provided.
Inheritance
For many retirees, leaving an inheritance makes up a significant portion of their financial plan.
Whether the beneficiaries are your loved ones or a charity, there are many advantages to leaving them a portion of your assets at your death through life insurance.
The amount of insurance paid at your death is not taxed. The beneficiaries do not need to consider it as income and include it in their income tax return.
Furthermore, if you make a donation to a charity, the estate could receive a tax credit for the donation. This credit can be used to reduce tax on the income for the most recent tax return.
A life insurance with surrender value can also give you access to your funds to finance a project or to deal with an unforeseen event.
A final savings spree before you retire
Have you already made the maximum contribution to your RRSP and TFSA?
Universal life insurance can be an investment tool for you to invest more money, tax-free.
Speak to an advisor
For every kind of need or situation, there is a tailor-made solution. To check which solution and type of life insurance suits you best, schedule a meeting with your financial security advisor.
He or she will assess your needs and determine, from among the wide range of viable products, the optimal insurance amount for you.
*Beneva designates Beneva Inc., Financial Services Firm.
Note: This article is provided for information purposes only. Under any circumstances, it should not be considered as financial, legal or tax advice. For advice on your personal situation, speak to your advisor. Beneva inc. cannot be held responsible for any decision made as a result of reading this blog post.
Life, health and accident insurance, and investment and retirement products are offered by Beneva and are distributed by the financial security advisors of Beneva Inc., Financial Services Firm.
