Howard Pressman Featured in USA Today Article, "Financial planning: How to determine if you need life insurance in retirement"
May 2, 2018, USA Today - Many older Americans wonder whether they need life insurance in retirement. They wonder whether their surviving spouse and loved ones need the capital generated by the life insurance policy — the death benefit – to replace their income and preserve assets.
As with many things in the world of personal finance, the answer depends on the facts and circumstances, says Howard Pressman, a certified financial planner with Egan, Berger & Weiner in Vienna, Va.
Given that, here’s what experts say you should consider.
Did you plan well enough?
Some financial planners say if you planned well enough prior to retirement, you won’t need life insurance. You’ll have no debt, plenty of assets to replace the income lost due to your death, and plenty of money to leave to heirs. That all sounds good on paper, but reality is different.
Crunch the numbers.What does your cash flow statement look like before and after the death of either spouse? If there’s more than enough income to cover the surviving spouse’s living expenses throughout retirement, then you might not need life insurance. But if there’s not enough income — even after you factor in how much the couple has saved and whether that can reliably provide for the surviving spouse — then you might need life insurance, says Pressman.