Don't Leave Your Family With An Unwanted Inheritance

Wednesday, March 1, 2017

(NAPSA)—If you or someone you care about is among America’s estimat- ed 75 million baby boomers, there are a few financial facts and figures you should know. For one thing, middle-income boomersare carrying more debt into retirement than ever before. So what happensto financial obligations after death? Life insurance not only helps provide your surviving family members an income after you pass away, but can also be used to payoff debts. According to a recent study commissioned by Bankers Life Center for a Secure Retirement, middle-income boomers have lowered their overall expectation for financial independence in retirement since the onset of the finan- cial crisis in 2007. Ten yearslater, fewer boomers expect they will retire debt free (34 percent today, down from 45 percent before the crisis) and fewer have paid off their mortgages (19 percent, down from 25 percent). Ifyou have enough assets to cover your debt when you pass away, creditors will receive their due from your estate. However, it matters whether your homeis your primaryasset and whetheryour spouse or another family memberis a co-applicant or co-signer on an account. Your mort- gage and other debts, such ascredit card bills or car loans, could fall to them. Proceeds from life insurance can be used to pay down your mortgage and debts, as well as help pay for funerals and other final expenses. “Carrying debt in your retirement years is very commontoday, andlife insurance can help provide peace of mind that your family’s comfort and security are provided for,’ explained Scott Goldberg, president of Bankers Life. “Boom- ers should do a complete inventory of their finances and debt, weigh their options, andfind a life insurance policy that will help ease any potential financial burdens upon death” Hereare four tips to help you figure out whether purchasinglife insurance is right for you: Ha i o Understanding life insurance can help you have peace of mind. 1. Determine your need: Does someone depend on you financially? Are you lacking the funds to cover your final expenses? If yes, consider life insuranceto help protect your family’s future. A beneficiary can use the moneyforliving expenses or to pay off debts. 2. Understand the different types of life insurance: There are three major types of life insurance coverage: term life, whole life and universal life. All three types pay a death benefit but each can differ in terms of coverage length, premium flexibility, cash value accumulation and distribution, and other factors. 3. Decide how muchlife insurance you need: How muchcoverage would yourfamily need if something happened to you? What expenses need to be covered or debts paid off? How muchis set aside for savings? ‘The answerswill help you determine the type and amountof life insurance you'll need. 4. Consider seeking profession- al guidance: Options are available for nearly any income and assetlevel, age andrisk tolerance. An insuranceprofessional can help you evaluate yourlife insurance options and costs based on your needs and circumstances. Learn More Visit www.BankersLife.com/TopTips5 to download a free booklet on Top Tips for Retirees including Reducing Debt in Retirement, Medicare Enrollment, Man- aging Your Prescription Drug Costs, and more.

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