A recent report showed fewer baby boomers planned to purchase a new home this spring because the economy's downturn forced many to worry about their personal finances. A lack of financial confidence increases the need for families to protect themselves with term life insurance.
According to a report from Harvard University's Joint Center for Housing Studies, the chance for a homeowner of any age to consider moving dropped to 5.5 percent between 2007 and 2008. That was down from 10 percent in 1986-1987, and the report noted the mobility rate for older homeowners experienced the most significant drop, falling 37.5 percent between 2005 and 2009.
Seniors saw the housing downturn rob them of their equity, leaving many without the significant investment advantage they thought they had by owning a home.
"Many seniors who planned to retire and move to a different home deferred that decision after the recent financial crisis took a toll on both the equity in their homes and their retirement accounts," the report said.
Unexpected events can wreak havoc on a retiree's savings and immediate income, making it important for them to purchase a term life insurance policy, which can step in and provide financial support in a crisis situation.