It’s almost the end of the school year. For a lot of parents, their lives will change drastically as they watch their graduates head off to live away from home and they become “empty nesters”. A common question in the life insurance world is, do empty nesters need life insurance? The answer is most definitely yes… and here are five reasons why.
(1) Meeting Goals
Life insurance can help to “finish the job” if your children aren’t completely independent financially, or are still in college. You might have saved for tuition costs, but living expenses (apartments, dorms, laundry, food, etc.) continue to pile up as your children complete their education or get themselves onto more solid footing. But, Social Security benefit payments for a surviving spouse (and younger children) stop when the kids leave high school.
(2) Covering “Blackout Periods” in Social Security
According to a recent study, 5% of married women ages 51-64 were poor, but 20% of widows were poor. The reason for this is that because a lot of people don’t plan for life insurance to pay an income to the surviving spouse after their kids are grown. As mentioned above, Social Security pays nothing from when the youngest child leaves high school until the surviving spouse applies for benefits. This interval is called the “blackout period”.
(3) Supporting Other Dependents
If you have disabled adult children, parents, or anyone else who depends on you for financial support, life insurance would be a way to continue this support if you happen to pass before they do.
(4) Creating a Financial “Safety Net”
We’ve all heard to have an “emergency fund” – and most experts agree that it should be equal to half a year’s income – just in case you are met with unexpected life expenses. If you don’t already have an emergency fund, your family will be even more financially vulnerable without one. Also, it might be somewhat more difficult for survivors to obtain credit. Life insurance can solve this problem.
(5) Meeting Commitments on Two Incomes
Most two-earner couples make financial commitments such as mortgages, loans, leases, etc. based on their combined incomes. Having life insurance on each earner enables the survivor to continue meeting commitments.
We are here for you! As a family-oriented business, we understand that there is nothing else in life more important. If you have questions about your current life insurance coverage, or are interested in seeing what might be best for your situation, contact us today and let’s make sure you and your loved ones are protected.