You are about to retire from a long career in your practice, your children are self-supporting and you have paid off your house. That leaves no reason to continue carrying a life insurance policy, right?

For many physicians, this is true. Life insurance is traditionally intended to replace lost income if the policyholder dies prematurely, and retirees have no income in need of replacement. But there are plenty of situations in which it makes sense to keep your policy well into retirement, which we have outlined below.

When Retaining Life Insurance as a Soon-To-Be Retiree Makes Sense

1. To pay off existing debt. For many physicians, keeping their life insurance policy ensures that their financial burdens do not affect their family. A life insurance policy can cover any existing debts such as medical bills, mortgage payments and outstanding loan balances upon your death.
   

2. To care for dependent relatives. Physicians with dependents will want to consider retaining their policy to ensure they are provided for. If you are responsible for a grandchild or have relatives with special needs, speak with your insurance advisor about obtaining a permanent life insurance policy. This coverage option doesn’t have a set expiration date, and will always be there to provide financial protection for the beneficiary.
   

3. To pay estate taxes. A life insurance policy can also serve as an estate planning tool. If you have estate taxes to cover, life insurance can help your heirs pay them without having to liquidate assets.
   

4. To protect your spouse. A term life policy is a viable option for protecting your spouse from financial hardship if you die before them. When purchasing or continuing to carry life insurance for this reason, it is important to cancel your policy in the event that your spouse, whom the policy was intended to protect, dies before you do.
   

5. To help fund retirement. Permanent life insurance provides insurance protection throughout your lifetime and will build cash value that can be withdrawn (with certain limits) to help fund your retirement goals in the future. For physicians looking to travel or do new and exciting things in their later years, having an additional source of retirement funds can be a great help.  

6. To donate to charity. Some retiring physicians purchase a permanent life insurance policy to use as a charitable donation when they pass. If you are interested in giving a charitable gift of life insurance to a charity or to your university, make sure you have a permanent life insurance policy in place.