You feel as though you have made it. The children are gone and starting their own lives. You have the whole house to yourselves and plenty of time.
People are living longer and staying healthy longer. Many studies show that the retirement years might be longer than the working years.
A study by Franklin Templeton Investments Canada found that nearly half of Canadians worry about outliving their retirement savings.
First the sad story. Years ago, a couple came to our office. They were in their 50s and owned a family business. They wanted to look at life insurance plans and see what it would cost. At the time $500,000 worth of coverage would have cost $180.45 per month. After much deliberation, they decided it was just too expensive. A year and a half later, we received a call from the lady telling us her husband had just passed away from cancer and wanted to know if we could help in any way. We did help with the government death benefit of $2,500 but that is all she could get. The story ends with the lady selling all they had to pay off debts in the business. When she was done, she moved into a the basement suite and much her furniture was donated to by friends. Life insurance could have prevented this tragedy and the cost was only $6 per day. Could this be you?
A second story, showing some planning. A husband age 48 suddenly passed due to a heart attack. The spouse received a tax-free death benefit of 750,000 dollars. They had a good amount in savings and there was only a small amount left on the mortgage. The spouse also had a good job at the time her husband passed. But one year later was laid off and could not find a job that paid the same amount. She later shared that because of the life insurance she could take a lesser paying job, and enjoy it without the financial stress. She was also able to help both children with down payments towards their homes and could do it with being concerned she would be without money for retirement. The premium was very small compared to financial benefit.
Which story will be written about your last days?
At this stage of life, life insurance is used for: