Life Insurance Retired Workers

[sam]

Hai,

I am Sam.

Life Insurance Benefits For Retired Workers
Employees reaching retirement often worry about continuation of life insurance protection beyond active employment. The fact is life insurance for retired employees is scarcely available.

Life Insurance Protection For Retired Workers
On reaching retirement employees in most private firms generally tend to lose life insurance protection that they had from their employers while on the job. Thankfully some employers do continue a minor portion of life insurance for retirees, with some income protection for dependents. Moreover life insurance benefits and coverage provided to retired workers, is far less compared to what is provided for active workers.

But the few benefits of life insurance policy for retired workers are:
At least there are funds to pay for the funeral and other costs associated with death. Some could even cover estate taxes. Life insurance, when it's placed in an irrevocable life insurance trust to keep it out of the estate, can provide the funds to pay for any estate-tax liability.

How Can People Get The Benefits From Life Insurance?
Although many survivors tend to misuse the benefits when someone dies, there are survivors who are professionals who lose time at work therefore lose some income while recuperating from the shock. Typically, adjustment costs aren't very high some are lucky to get an extra $10,000. But an additional $10,000 of insurance can be obtained at a very small cost.

Most workers eligible for pension benefits choose a joint-and-survivor option. This guarantees benefits through the life of the surviving spouse, but it pays the couple 20% to 25% less than the maximum pension benefit. Under the pension maximization approach, the retiring worker chooses the single-life option (with the spouse's written consent), which pays out the maximum benefit for the life of the pensioner. The difference between this amount and the smaller amount the pensioner would have received under the joint-and-survivor option is used to buy life insurance.

If the pensioner dies first the surviving spouse uses the death proceeds to continue to pay for retirement but if the spouse dies before the pensioner, maximum benefits continue to be paid out. The good news is that insurance purchased for other purposes while you are younger is likely to pay for itself and fund the desired benefits with no additional costs after retirement

Employees reaching retirement often worry about continuation of life insurance protection beyond active employment. The fact is life insurance for retired employees is scarcely available.

Protection For Retired Workers
On reaching retirement employees in most private firms generally tend to lose life insurance protection that they had from their employers while on the job. Thankfully some employers do continue a minor portion of life insurance for retirees, with some income protection for dependents. Moreover life insurance benefits and coverage provided to retired workers, is far less compared to what is provided for active workers.

But the few benefits of life insurance policy for retired workers are:
At least there are funds to pay for the funeral and other costs associated with death. Some could even cover estate taxes. Life insurance, when it's placed in an irrevocable life insurance trust to keep it out of the estate, can provide the funds to pay for any estate-tax liability.

How Can People Get The Benefits From Life Insurance?
Although many survivors tend to misuse the benefits when someone dies, there are survivors who are professionals who lose time at work therefore lose some income while recuperating from the shock. Typically, adjustment costs aren't very high some are lucky to get an extra $10,000. But an additional $10,000 of insurance can be obtained at a very small cost.

Most workers eligible for pension benefits choose a joint-and-survivor option. This guarantees benefits through the life of the surviving spouse, but it pays the couple 20% to 25% less than the maximum pension benefit. Under the pension maximization approach, the retiring worker chooses the single-life option (with the spouse's written consent), which pays out the maximum benefit for the life of the pensioner. The difference between this amount and the smaller amount the pensioner would have received under the joint-and-survivor option is used to buy life insurance.

If the pensioner dies first the surviving spouse uses the death proceeds to continue to pay for retirement but if the spouse dies before the pensioner, maximum benefits continue to be paid out. The good news is that insurance purchased for other purposes while you are younger is likely to pay for itself and fund the desired benefits with no additional costs after retirement

||| |

[arnold111]

Nice thread! I really like your provided information. It's really helpful for me.
Thanks a lot!

[snyk99]

But the few benefits of life insurance policy for retired workers are:
At least there are funds to pay for the funeral and other costs associated with death. Some could even cover estate taxes. , when it's placed in an irrevocable life insurance trust to keep it out of the estate, can provide the funds to pay for any estate-tax liability.

[trishaltbr]

When choosing a life insurance plan, never base your decision solely on the monthly premium. There are many other cost factors -- deductibles, co-payments, and the like -- that will determine the true price tag of your insurance. You'll need to read the fine print of the life insurance plan, including what it does and does not cover, the in-network versus out-of-network coverage and costs, claims processing procedures, and the coverage limits.

[Denise]

I have something important to add. My suggestion is that when choosing a life insurance company, make sure that the company is financially strong, and exhibits a good performance record with a reputation for integrity. Your online insurance provider should be able to furnish you with financial information of all the insurance companies on its database. A good website will only deal with companies that have proved themselves and can provide you with the A.M. rating (the most recognized rating organization in the country) of the insurance company you are interested in. Look for ratings of A or higher (the highest being A++. Other organizations that rate services are Standard and Poor’s, Moody’s, Fitch, and Weiss. An insurance website should be able to provide you with ratings from any of the above. Also make sure that these ratings are current and have been updated recently.

Denise at AccuQuote

[ricky028]

These days a lot of retired workers do not have a permanent life insurance policy. Though, they do have term insurance through their employer. Meet with an independent life insurance agent from a firm with good financial ratings and ask them to review or audit the policies you have. You can find out if the insurance you have through your employer is portable and also if it would be reasonable for you to convert it to a permanent policy at your retirement. In many cases, a good insurance professional will be able to assist you with determining the type of coverage that you should have. If you aren't sure about the advice you receive, seek a second opinion from another representative from a highly rated firm with a local sales office.

[maxjlone]

Thanks for sharing the useful info with all.I totally agree with you.I think Many life insurance policies, including some term insurance policies, have accelerated death benefits, a provision that allows you to use part of the policy's death benefits and/or cash value under specified circumstances, such as terminal illness or a need for long-term care. When you die, the death benefit of the policy will be reduced by the amount paid out, by the company.
Thanks again..That's really very good& also useful.