Well, that depends on whether or not you have a backup plan.
Depending on the amount of your pension, you and your spouse could live quite well. However, if you were to pass away, your pension checks would either drastically decrease or stop altogether, leaving your spouse with no source of income.
Before you start to panic, this scenario doesn’t have to become a reality. Remember the backup plan we mentioned? Today’s blog post will explain five benefits that life insurance can provide after you’ve retired.
1) Avoid a reverse mortgage: You’ve probably seen commercials for reverse mortgages on television throughout the recession. If your income is limited, and you’re retired, using the equity in your home as cash sounds like a good idea--in theory. However, this option is not without its pitfalls, namely high fees and interest rates. It also means that you won’t be able to leave your home to your heirs when you die because the house must be sold to cover the loan amount. A life insurance policy may give you financial options.