As the years go by, you may feel your need for life insurance has passed and that your savings and investments, along with Social Security, will take care of whatever lies ahead. In fact, many people harbor misconceptions that prevent them from purchasing or maintaining the insurance coverage they need.

Myth #1: I don’t need life insurance once my children are self-supporting and my mortgage is paid off.

Perhaps, but if you died today, your spouse would still be faced with daily living expenses. And what if your spouse outlived you by 10, 20, or even 30 years, which is certainly possible today? Would your financial plans, without life insurance, enable your spouse to maintain the lifestyle the two of you have worked so hard to achieve?

Myth #2: I thought I would need life insurance to help pay estate taxes, but that is no longer a concern.

Even if you are no longer currently subject to federal estate-tax liability, there’s no guarantee that will always be true. Tax laws can change very quickly. But even if they don’t, there are many other reasons to obtain coverage later in life. Life insurance can be used to pay for things like state estate taxes, income taxes generated from leaving an IRA or annuity to a loved one, outstanding debts and probate costs. Life insurance also provides your heirs with instant liquidity to pay for funeral arrangements or other costs. It can also be used to equalize an estate among your heirs, or for business-succession purposes.

Myth #3: Life Insurance costs too much when you are older.

While it’s true that life insurance costs more the older you get, that doesn’t necessarily mean it is out of your price range. The cost for basic term life has fallen by about 50 percent over the past 10 years. A healthy, non-smoking, 55-year old man can buy a 20 year term policy for roughly $1,500 per year. For a woman in the same demograph-ic and health class it would be even less at $1,125. The cost of permanent insurance has also declined, even while insurers have been adding innovative features and benefits to new policies. If you need insurance, don’t make the mistake of assuming you can’t afford it.

Think you no longer need life insurance?

You may want to think again.

CBIZ Life Insurance Solutions

CBIZ Life Insurance Solutions, Inc.