Approaching Retirement? Recheck the Role of Your Life Insurance

Start with the obligations that remain

Retirement changes income, but it does not settle the life insurance question by itself. List the household expenses a surviving spouse or dependent would face, remaining debt, caregiving commitments, final expenses, and resources already available. Consider how pension elections, Social Security, savings, and other income may change after a death. The right discussion is about a specific household, not a standard age or salary multiple.

Inventory every existing policy

Gather current statements for term, permanent, and employer-provided coverage. Record each insured person, owner, beneficiary, death benefit, premium, term end date, cash value if relevant, and any outstanding loan. Ask the plan administrator what happens to workplace coverage when employment ends; portability and conversion rules can have deadlines. Our group life transition guide lists questions that also matter near retirement.

Compare options without creating a gap

Some households may need less coverage after debts fall; others still rely on income or have ongoing dependents. Ask Jennifer Dammeier Agency to explain the cost and policy terms of keeping, adjusting, or applying for coverage. New coverage may require underwriting and is not effective merely because an application was submitted. Do not cancel an in-force policy until you understand its guarantees, surrender effects, and any replacement policy’s confirmed effective date. Tax and estate consequences belong with qualified advisors.

Make beneficiary and document access practical

Confirm the insurer has the intended primary and contingent beneficiaries on file, then store policy numbers and claim contact information where trusted family members can locate them. A will alone may not update an insurer’s beneficiary record. Revisit the review after a retirement date, pension election, major debt change, or family change. Browse the Life Insurance archive for more planning checklists. This worksheet does not determine a required coverage amount.

The Jennifer Dammeier Agency serves Bargersville and nearby Johnson County communities. Contact Jennifer Dammeier American Family Insurance with your current policy and details of your situation to discuss available options.

This article provides general educational information, not individualized insurance, legal, or tax advice. Coverage, availability, limits, exclusions, and claims depend on the policy and insurer. Review your documents with a licensed agent and consult other qualified advisors as needed.