The Importance of Financial Protection for Senior Women
 By David J. Hernandez,
Agent, New York
Life Insurance Company
You likely have great plans for your senior years and have saved money to fund those plans. But some people forget to plan for an extended retirement, inflation, or health and long-term care expenses.
Senior women face a unique set of realities that makes it even more crucial to ensure assets are protected. Since women, on average, live longer than men and the rate of divorce has risen, many senior women are alone. According to the Women's Institute for a Secure Retirement, more than 40% of older (65+) single women depend on Social Security for almost all of their income.1 They can't count on a spouse's finances, and may not have familiarity with managing money to make what they have last.
Fortunately, it's never too late for senior women to put some strategies in place to help ensure that their golden years stay that way. Some of the goals worth considering include estate planning to help conserve your estate for your beneficiaries, accumulating funds while maintaining an income, and creating contingency plans in the event of long-term health needs.
 Getting Started:
Keep Your Life Insurance Policy in Force
Many seniors think that they no longer need life insurance once they've retired. After all, they have likely paid off their mortgage, college bills and other major debts. However, life insurance can be a vital part of an estate plan because—unlike many other assets—life insurance proceeds are not subject to probate and are immediately available to your heirs, usually income- tax free. Permanent life insurance offers additional benefits, such as tax-deferred accumulation, and access to policy cash values via a loan.2 And life insurance can also be used to fund a trust.
Consider a Fixed Annuity
If you have a lump sum of money you have earmarked for retirement—perhaps from a pension or an inheritance—and are looking for a less risky vehicle than the stock market, one option can be a fixed annuity. Fixed annuities can provide tax-deferred growth of your money, competitive rates of return, and, depending on the option you choose, guaranteed income for the rest of your life. Money paid out from an annuity is only taxed as you receive it. Withdrawals may be subject to regular income tax, and if made prior to age 59 ½, may be subject to an additional 10% IRS penalty.
Protect Yourself in Case You Fall Ill
We all hope we could stay with an adult child if we became seriously ill or incapacitated. Unfortunately, with dual-income families on the rise, this is not always feasible. Even if you remained in your own home, it still could be difficult for children to care for you or quickly reach you in an emergency.
That's why it's important for senior adults to plan ahead and make contingencies for declining health. Several products can help pay for your care, should you require nursing home care or a variety of home and community based services.
You Can Make It Work
You've spent many years working and saving toward your retirement and have succeeded even with the pressures of being a woman. Now is the time to complete the circle and take control of your own future. With proper planning, these can truly be your "golden years."
For more information on New York Life products and services that can be used to help you plan for your senior years, please contact David J. Hernandez, Agent, New York Life Insurance Company, at 1-877-720-2389.
Neither New York Life nor its agents offer tax, legal or accounting advice. Please consult with your professional tax, legal and accounting advisors regarding your particular situation.
- Women's Institute for a Secure Retirement, www.network-democracy.org/social-security/bb/whc/wiser.html, 10/04/06.
- Loans against your policy accrue interest and decrease the death benefit and cash value by the amount of the outstanding loan and interest.
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