Paying off the mortgage can change retirement finances overnight. A household that once needed life insurance to make sure a surviving spouse could keep the house may suddenly have no home loan, financially independent children, and enough savings to cover everyday expenses. The National Association of Insurance Commissioners (NAIC) recommends reviewing coverage as financial circumstances change, including after retirement or paying off a mortgage.
That naturally raises a question: should life insurance in retirement still command hundreds or even thousands of dollars from the budget? For some retirees, keeping the policy continues to solve an important financial problem, while for others the coverage may have outlived the reason it was purchased. Before canceling anything, run these six questions against the policy and the financial life your family would actually have after your death.
