A lot of the focus in the life insurance industry over the past few years has been on getting young adults into the fold. But at the same time, some of the industry's most loyal long-term customers may have similar needs. That's because while millennials were routinely asked to evaluate the role life insurance can play for them, older people - particularly those approaching retirement - should probably do the same thing.
Many baby boomers and other older workers may have had their life insurance coverage for decades, but their needs have almost certainly changed significantly since then, according to a report from MarketWatch. For instance, many may have purchased term life insurance to help protect their families in the event of their untimely deaths, but for many boomers, their kids have grown up and moved out, finding financial independence on their own. And often, that term coverage may have expired years ago without the policyholder even noticing.
What can be done?
For this reason, it's vital for those now approaching their retirement years - be it at the age of 62 or 70, depending upon each person's preferences and financial requirements - to assess where they stand with their life insurance, and what their needs will be for this kind of product as they progress through their golden years. Some may choose to use the cash value their non-term plans have built up to pay for various issues, and others may choose instead to keep paying into that coverage for a rainy day, should one ever arise.
They might also be wise to take into account things like final expenses, and providing for spouses or children after their passing, even if they won't be as reliant on replacing the lost income at this juncture, the report said.
Meanwhile, some others might also want to consider the importance of investing some of the money they previously put into life insurance policies into long-term care insurance instead, according to a separate MarketWatch report. This kind of coverage can be a bit costly each month - especially for those who have already retired and are now living on a fixed income - but it can certainly come in handy when the necessity of nursing care arises.
Another issue recently observed when it comes to long-term care insurance is prices are rising sharply for a number of reasons, meaning that it might be wiser for people to get this kind of plan as soon as possible so that they can more reasonably afford the coverage over the course of potentially decades, the report said.
The best thing brokers and life insurers can do is make sure they're reaching out to older policyholders on a regular basis so that people understand how their financial realities are evolving, and what they can do about it. That, in turn, will lead to better decisions that helps to meet everyone's needs on an ongoing basis, which becomes even more important once incomes drop in retirement.