Life and your life insurance at 65

There are some who think that life really begins at 65. With the cares of
work and raising a family behind them, many people finally start doing the
things they've long dreamed of doing. Some choose to travel; others are
content to relax around the house. Some even get up the nerve to clean out
the garage. But one of the last things on the minds of many who reach this
milestone is their life insurance plan. After all, who really needs life
insurance after age 65?

You may want, if you are approaching age 65, to consider the following six
questions:

1. At your death, will your spouse require more than what Social Security
offers and any investments you currently have in order to maintain his or
her standard of living?

2. Do you or will you have a parent, child or family member dependent upon
you for support beyond your age 65?

3. Is your estate, all totaled, worth more than $2 million, the benchmark
at which federal estate taxes begin to be assessed? Would your spouse or
heirs have to sell off assets, perhaps for less than their market value in
order to pay those taxes? Please reference the note below.
 

4. At retirement, are you planning on electing a smaller initial pension
benefit so benefits will continue to your spouse after you die?


5. Have you wanted to reduce your taxable estate and leave something to
charity without having to take away from what your heirs will inherit?


6. Would you like to see your business continue into the future, intact and
free from debt, for the benefit of your children or valued employee?


If you answered "yes" to any of the above, you probably have some need for
life insurance coverage after age 65. Maybe you are one of those people
whose policy will be paid up by then. But maybe you are just now
considering the ramifications of these questions. If like so many of us you
are in the latter group, relax. With today's variety of life insurance
products, you can tailor a policy to provide the protection you need at a
price that is still far less expensive than the alternative.


Please note: The applicable exclusion amount is $2 million and is scheduled
to increase gradually until 2009. In 2010, the estate tax is scheduled to
disappear, but in 2011 it will reappear with a $1 million exclusion amount.

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