Do You Need Life Insurance in Retirement?

As you age, the idea of life insurance seems increasingly unnecessary. Many retirees prefer not to continue paying life insurance premiums when they no longer have young families to take care of. However, before you shrug off the idea of life insurance in retirement, it's a good idea to consider that life insurance still has its virtues.

You may still have dependents. Many retirees no longer have young children who will suffer financially if they pass on. But even once your children have established their own lives, you might have another dependent: Your spouse.

Your spouse might need to be protected from the loss of your income, even if you are retired. Check out the conditions of your pension or annuity. Also, consider that your Social Security check forms a portion of your retirement household income. When you die, your spouse's income is likely to be affected. Pension payments might stop, Social Security income often decreases, and annuity payouts might also cease, or getting at the remaining benefits might prove expensive.

It's important to look over the conditions attached to the income your spouse receives upon your death. If you care for your spouse, you want to make sure he or she is taken care of financially. The right life insurance policy can ensure that, when you pass, your spouse can make up the shortfall that comes with the loss of income from sources tied to your lifespan. Life insurance can be used in estate planning.

Heirs generally do not have to pay taxes on life insurance benefits. In some cases, retirees can use life insurance as a way to help their heirs pay estate taxes. Life insurance trusts, when used properly and set up with the help of a knowledgeable estate planner, can be a valuable tool for a retiree.

For some people, life insurance in retirement isn't very practical. However, for others, life insurance coverage can provide a solid estate planning strategy, as well as provide for a spouse later on.

Remember that you are more likely to save money by renewing an existing policy than by purchasing a new life insurance policy after age 50. So, before you let your life insurance lapse, make sure you run the numbers. You might need life insurance in retirement after all.

best life insurance policy to buy

best life insurance policy to buy : Choosing the best life insurance for your situation can be daunting.  With so much conflicting information, this article will go over the differences so that you will be better informed and can choose the right policy.

Many people avoid investing in life insurance simply because they imagine the costs as being too high for their budgets. Fortunately, there are a wide variety of insurance policies available for every set of needs and budgets. A lot of companies will give you an instant term life insurance quote on their website for free. Insurance providers provide death benefit payouts ranging from as little as a few thousand dollars all the way up to a few million. Most providers offer more affordable term life insurance policies—term policies have low premiums and payout death benefits for the duration of a specific period.

If cheap life insurance with low premiums isn’t a priority, the majority of life insurance providers feature coverage plans that accumulate cash value over the life of the policy. With global, universal and whole insurance it is possible to configure lucrative benefits packages that payout death benefits and can be cashed out or borrowed against like equity.

What to Look for in a Life Insurance Policy

Policy Benefits
All insurance policies are different. We evaluated insurance providers largely on the variety and flexibility of the life insurance policies they offer. From five year term life insurance to variable universal policies, our leading picks for life insurance providers provide comprehensive coverage for every set of needs.

Pricing and Premiums
Premium payments are going to be different with different providers depending on risk factors such as your health, lifestyle, age and occupation. In general, insurance providers receiving a high score on our site gave more lucrative term life insurance rates than competitors regardless of age or lifestyle.

Additional Services
Life insurance is a must, but there are many other services we expect to see available in addition to, or as an alternative to, life insurance. Annuities, retirement planning, estate planning, mutual funds and plans tailored for small business are services we expect from the best providers.

Customer Support
Red tape and poor customer service are the last things a grieving family member wants to deal with. Our top picks for life insurance provider boast excellent customer service, approach claims in a timely and professional manner and go out of their way to meet customer expectations.

The Best Life Insurance Policies ?

Term Life Insurance
Term life insurance is typically the best policy for most Americans since it allows you to have the most amount of coverage for the lowest price.  Some of the most outspoken advocates for term life are the popular financial advisors you see on TV; Susie Orman, Dave Rasmey and Clark Howard.  The strategy with term life insurance is to buy term and invest the rest yourself.  Most people have their major obligations for a certain period of time 10-30 years.  After a certain period of time, usually the mortgage is paid down or paid off, the children are grown and your future income won’t need to be protected in the same capacity as it does today.  Term life insurance will be the best solution if this describes your situation.

Term life insurance lasts for a designated period of time.  The term period for most companies range from 10, 15, 20, and 30 years and the rates do not change during this time.  Also, there is no penalty for cancelling the policy early.

Whole Life-Universal Life
Whole life insurance is a policy that remains in effect for the policy holder’s entire life. Generally speaking, the policy will remain active as long as the owner continues to pay the policy premiums.  Due to the cost, this type of policy is more optimal for estate planning and for other instances where permanent coverage is needed.

No-Exam Life Insurance
Life insurance that does not require a health exam is going to cost you a lot more than if you did the exam.  This type of policy is ideal for someone who doesn’t have the time to do the medical exam and doesn’t mind paying the extra premiums.  These clients typically need a policy in a hurry to cover a divorcee decree or they may be worried about doing the physical.  Also, do not mistake no-exam life insurance for no-underwriting.  The underwriting on a no-exam policy is very strict and not as favorable as if you did the health exam.

Accidental Death
Accidental death policies only pay out the death benefit you if you die as result of an accident. Typical classifications of accidents include but are not limited to: auto accidents, poisonings, falls, fires and chocking. Deaths from natural causes such as heart disease, cancer and old age are not covered under an accidental death policy.  This type of policy is good if you are traveling, have a dangerous occupation, and have medical problems that will exclude you from getting traditional life insurance.  It’s typically cheaper than term life since the policy only covers accidental deaths.

Wrap Up
Since life insurance is going to be one of the most important financial purchases you ever make to protect your loved ones, choosing the right policy is paramount.  Don’t let an overzealous agent talk you into buying a policy that you don’t need just so he can receive a larger commission.  Work with an experienced agent that will have you and your family’s best interest at heart.

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best life insurers in Canada 2012

best life insurers in Canada 2012 - There are many life insurers in Canada, but only those with the highest revenue, premium income, profits and asset value make the Top 20 in the country. According to the June 2012 issue of Financial Post Business Magazine, number 20 is:

Penncorp Life Insurance Company. Penncorp specializes in disability insurance for Canada's blue and grey collar self-employed individuals. The company just squeaked into the list with $132.6 million in revenue, $78 million in premium revenue, $11 million in profit and $474 million in assets.

Blue Cross, Assumption Life and Primerica Life  sit at 17, 18 and 19 respectively, while Equitable Life is just outside of the top 15. At the midpoint of number 15 sits BMO Life Assurance with $1,041,664,000 in revenue, $760,332,000 in premium income, $14,209,000 in profit  and $5,390,191,000 in assets. Transamerica Life, The Co-operators, Rga Life Reinsurance Company of Canada and Foresters Life Insurance sit just outside the top 10 at 14, 13, 12 and 11.

Once the top 10 is cracked, you start to see the country's real major players in the insurance game. At ten sits Empire Life, which offers a range of individual life insurance products, as well as critical illness, group benefits and various wealth management options. They earned their spot by posting $1,557 billion in revenue, $758 million in premium income, $25.7 million in profit and over $10 billion in assets.

Number nine gives us La Capitale Civil Service Mutual, which reported $1,666,822,000 in revenue, $1,353,612,000 in premium income, $50,496,000 in profits and $4,327,508,000 in assets. La Capitale is a Quebec-based life insurer with a 70-year history there and has now gone national.

The eighth spot held by the life insurance division of the RBC Financial Group, RBC Insurance. It earned that with $1,727,154,000 in revenue. $1,108,977,000 in premium income, $39,317,000 in profit and $7,527,043 in assets. Just ahead, at seven, is a Quebec-based provider called Societe D'assurance-Vie Inc. with $2,089,300,000 in revenue, $1,906,700,000 in premium income,  $40,500,000 in profit and $2,910,100,000 in assets.

Standard Life is just outside the top five. The company has a 95% customer retention rate, proving that its customer service is among the best in the industry. They have many solutions when it comes to insurance, whether the focus is on protection or investment. One of their products, Perspecta Universal Life Insurance, offers the insured both asset protection and investment growth, while serving as a tax sheltering tool for families and businesses as well. For the sixth spot, Standard Life posted $3,333,538,000 of revenue, $932,377,000 of premium income, $243,678,000 of profit and $21,881,402,000 in assets.

The top five starts with Desjardins Financial Security, which used to be ranked fourth, but has dropped to fifth since then. However, they are ranked first among Canadian health and life insurance providers in Quebec. Their fifth place finish was earned with $5,264,900,000 in revenue, $3,271,500,000 in premium income, $225,500,000 in profit and $18,272,800,000 in assets.

Replacing Desjardins in fourth spot is Industrial Alliance. One of the 100 largest companies in Canada, this provider is known for a specialized product called  the Peek-a-Boo, which is specially designed for newborn babies residing in Canada and protects against any unexpected accidents. It comes free of charge for the first year, so parents are not burdened with any initial cost. They posted $8,037,000,000 in revenue, $4,992,000,000 in premium income, $141,000,000 in profit and $37,441,000,000 in assets.

In the top three there are no surprises, you start seeing the largest insurance companies in the country. In third place sits Sun Life Financial, a company that is so big, they claim that one in five Canadians have had business relations with them. Their huge organization put up $22,581,000,000 in revenue, $9,314,000,000 in premium income, $193,000,000 in profit and $218,027,008 in assets.

Just missing the title, in second place, is Great-West Lifeco. One of the most interesting products within their retirement and investment planning division is the Residential Mortgage where customers are offered tailored products by the team’s mortgage planning specialists. Mortgage life insurance enables you to add life insurance to your mortgage. Their second place finish is because of their $29,898,000,000 in revenue, 17,293,000,000 in premium income, $2,118,000,000 in profits and $238,768,000,000 in assets.

Finally, in top spot as the Top Life Insurer in Canada is Manulife Financial. This is no shock, as the company's presence is global and they are renowned for their financial strength as a company and their extensive product portfolio that covers every corner of the insurance industry. The title was awarded to them, thanks to their $50,983,000,000 in revenue, $17,504,000,000 in premium income, $218,000,000 in profit and $462,102,016,000 in assets.