If you wish use life insurance as a way to pass on wealth to future generations, you may want to consider getting permanent or whole life insurance.
You may not have to take out an entire new policy to do this, said Branch. “Most term policies do have a conversion option in them, where you can convert to a whole life at a lower face value.”
However, this option can be costly, he warned.
You can purchase a new whole life policy, but it can come in many forms, so consult with an independent insurance agent or your financial advisor to find a policy that fits your needs.
Certain whole life insurance policies also can act as a valuable tax shelter for retirees, said Johnson.
“You can put money into the insurance policy and it grows tax deferred. You can also borrow from it and not pay any income tax.”
“It’s not cheap, but the priority is different, because you’re trying to reduce future tax liability,” he said.
If anyone counts on you for money, it’s a good idea to have life insurance no matter your age. Keeping yourself and your family covered will help you to retire well.