We are Living Longer! What do we do now?

Recent survey results suggest we, as a nation, are looking forward to longer life-spans than did our parents and grand-parents. Life Insurance mortality tables now run to age 120, while estimated average ages at time of death are now around age 78. Keep in mind that “average” means many in the calculation lived well into their 90’s and above to off-set those passing away at ages much less than 78, to arrive at the current average.

Life insurance premium rates are lower today than ever before, due to our increasing lifespans. I could put you to sleep explaining how the actuaries factor that into their calculations. Just take my word for it today. (Better yet, ask your life insurance agent to give you a quote.)

The mythical “Retirement Age” of 65 is quickly fading into the sunset as more and more of us continue working far past that age…a lot of us are just getting our second wind at 65. Besides, it doesn’t make sense to spend thirty or forty years developing skills, knowledge, arts and crafts only to walk away from them at an arbitrary age designated way back in the 1930’s.

Living longer is good news, but also includes some challenges, such as the need for a reasonable income in our later years. Wives should anticipate life as a widow for ten or more years after losing their husbands. Plan for that now. (Statistics tell us widows ages 50 and older tend not to remarry.)

Ladies, do your husbands own substantial amounts of life insurance with you as their beneficiaries? What is a “substantial” amount? An example could be one million dollars then invested @5.00% return per year which would create cash flow of $50,000 per year before taxes. Can you live on that, plus Social Security benefits? (assuming SSA benefits are still around then)

Please keep in mind that the million dollars above does not have to be 100% life insurance; however, creating a million dollars in life insurance proceeds, income tax free, can be created with the stroke of a pen while building an investment fund balance of that size could take a lifetime for most of us.

Yes, one must pay premiums to cover the life insurance, but they will be a fraction of the benefits provided…and the full life insurance amount becomes payable immediately at death, whenever that happens.

Think about it, then DO SOMETHING ABOUT IT.

Carpe Diem

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