Reducing the Cost of Life Insurance

Do you need life insurance?
Life insurance is to protect income. You really don’t need it if you have no dependents. You should also be able to drop it after you retire and have pensions and investments set up to pay for your spouse. My wife and I currently only each have a $10,000 group term life policies that we get inexpensively through the school district we retired from. It would help cover funeral expenses. If I were die today, my wife would receive 60% of my pension.  We plan to use returns on our investments as fun money until one of us dies, and then use investment income to make up the gap for losing 40% of a pension and one Social Security check.  A rule of thumb is that you will need 80% of your current income if your spouse dies, since some of your expenses are fixed.  You can examine your own budget to see what expenses would drop and what would stay the same, if your spouse dies. Continue reading Reducing the Cost of Life Insurance