8 Benefits of Life Insurance for Retirees in the Philippines

Introduction

Retirement is one of the great milestones in life, and with it comes the need for careful planning. Life insurance is an important tool to secure good financial health and peace of mind for retirees. Life insurance provides a number of benefits in the later years, including: 8 favorite benefits of life insurance for retirees in the Philippines, according to Wealth Arki and Ready To Be Rich YouTube channels.

Financial Security for Dependent Beneficiaries

As individuals get older and head into retirement, there are a lot of dependents who still depend on them financially. Life insurance provides a death benefit, ensuring that your beneficiaries are provided for in terms of finances if you happen to pass. Wealth Arki stresses this can go a long way toward providing for expenses like daily living, medical care, and other essentials that allow your survivors to keep up their standard of living.

Final Expense Coverage

Funerals and costs associated with internment remain high, and without preparation, these costs will be borne by your family. Final expense costs can be covered using life insurance, such that other family members do not have to experience financial shock. Ready To Be Rich believes that dedicating a life insurance policy to these expenses can give peace of mind and save the family added grief in their time of loss.

Liabilities

There are retirees with liabilities such as mortgages, personal loan obligations, and perhaps some credit card debt. Proceeds from a life insurance policy can be used to repay existing debt and save other family members from becoming burdened with financial obligation. According to Wealth Arki, retirees should calculate their liabilities to help them choose the amount of coverage for their life insurance policy.

Estate Planning and Wealth Transfer

Life insurance can also be a useful estate-planning tool to facilitate a tax-efficient transfer of wealth to your heirs. A life insurance policy pays the death benefit income tax-free in most cases, which means your beneficiaries will receive the full amount without a portion being cut for taxes. Ready To Be Rich puts a focus on the fact that this aspect is very important for retirees who have a huge amount of assets, as this will help them pay for estate taxes and provide a smooth transfer of wealth to the next generation.

Charitable Contributions

If a retiree wants to be remembered by charitable contributions, life insurance may be the right type of policy. You can assign a charity beneficiary in your policy where, at the time of your death, a part of your estate will go to your cause, as emphasized by Wealth Arki. This will put a multiplier effect on your giving up on a charitable cause.

Cash Value Accumulation

In a permanent life insurance policy—usually whole life or universal life—there is a cash-value component that increases on a tax-free basis. Because this is part of permanent life insurance, this means during retirement, you can borrow against your policy’s cash value or withdraw part of it during emergencies. According to Ready To Be Rich, a retiree should study how it is actually accessed and what the conditions are in order to make use of this feature properly.

Supplementing Retirement Income

Life insurance policies designed to pay out a death benefit also come with the option to receive a portion of the death benefit while you are still alive. This is possible because the policy includes riders like accelerated benefits. This is especially helpful if a policyholder is diagnosed with a terminal illness or another condition that requires medical treatment. According to Wealth Arki, the said option will add value with the death benefit and further maximize flexibility on your cash stream during your later years.

Peace of Mind

One of the greatest values of life insurance to a retiree is peace of mind. With life insurance, one knows that their dependents will be financially secure and that their final wishes will be respected; this will give a retiree less worry and more enjoyment of their retirement. According to Ready To Be Rich, this is very important because happiness and contentment are aspects that should contribute to a healthy life.

Final Thoughts

Life insurance for retirees offers several premiums to Filipino clients and assures the security of the dependents, final expenses, debt, estate planning, charitable contributions, accumulation of cash value, supplemental income upon retirement, and peace of mind. Various benefits arise from life insurance for retirees, which they should derive security and fulfillment from. More insights to assist you, from the detailed Wealth Arki and Ready To Be Rich, can help you in making wise decisions regarding your life insurance needs.

A multi-award-winning blogger and advocate for OFWs and investment literacy; recipient of the Mass Media Advocacy Award, Philippine Expat Blog Award, and Most Outstanding Balikbayan Award. Her first book, The Global Filipino Bloggers OFW Edition, was launched at the Philippine Embassy in Kuwait. A certified Registered Financial Planner of the Philippines specializing in the Stock Market. A recognized author of the National Book Development Board of the Philippines. Co-founder of Teachers Specialist Organization in Kuwait (TSOK) and Filipino Bloggers in Kuwait (FBK). An international member of writing and poetry. Published more than 10 books.  Read more: About DiaryNiGracia