Life Expectancy and Insurance Requirements
Life Expectancy and Insurance Requirements
Most people make many plans for retirement including planning which community they would like to live in, calculating how much of a retirement account they need, and dreaming about the many past times they will now have time to pursue. One thing a lot of people don’t like thinking about though is their death and this naturally leads to the question of life expectancy. Thinking about this topic is critical though as life expectancy and the length of time you actually end up living after working is probably the single greatest factor determining whether you have enough money saved up on retirement and whether you’ll be able to sustain the life style you want through to end of life.
This has all sorts of implications on financial calculations and determining the correct level of savings and insurance you should be carrying. If you have a spouse you also have to account for a mismatch in life expectancy to determine how much the surviving spouse will require. One way to make up the shortfall is to take out life insurance that will provide the needed amount to the surviving spouse. This will take some calculation and planning to determine the right level of coverage. Life expectancy will also have an impact on your cumulative health insurance bills and your odds of having to have enough money to pay for the expensive treatments for a critical illness. As much as we’d like to avoid the topic of death it is absolutely critical to take into account in retirement planning.
Tags: Life insurance