Do retirees need life insurance?

Life insurance can be beneficial for many people, even those who have recently retired.


Life insurance provides critical financial protection for millions of Americans. Whether you’re young and just getting started in your career, married with small children or a senior with a limited income, life insurance can offer both valuable and cost-effective security. 

But what about those who have retired? Is life insurance still valuable or should those who have left the workforce spend their money elsewhere? As with most financial considerations, the answers to these questions are specific to the individual. However, there are some reliable ways to determine if life insurance is beneficial for those now enjoying retirement.

If you’re currently considering life insurance then start by getting a free price quote so you know exactly what to expect.

Do you need life insurance for retirement?

The answers to the following questions can help determine if you need life insurance in your retirement years. 

Do you have financial dependents?

Regardless of your age or your work status, if you have financial dependents then you should have life insurance to protect them. So, for example, if you’re retired but have a spouse or children relying upon your retirement income then you should have a life insurance policy in place. That way you won’t leave them shortchanged in the event of your death. 

How much life insurance should you secure? That depends on what you can afford. It also depends on your current standard of living and how much you’re currently contributing each month. Ideally, you would want enough life insurance to supplement any income or money that would be lost after your death. But it’s also possible that you would want more. Narrow down the exact figure you’re responsible for now and then back into a commensurate amount of life insurance.

Get a free price estimate now to see what you’re eligible for.

Do you have outstanding debt?

If you have any outstanding debt that you’ll otherwise leave to your loved ones and beneficiaries then you should strongly consider life insurance. It may be the most effective way to cover those debts after you die.

For example, if you still owe a significant amount on your mortgage loan, you’ll want to get a life insurance policy in an amount that can pay off what you owe. So, if you currently owe $100,000 on your home – and there’s no alternative to pay it without your income – then apply for coverage in at least that amount. This will ensure that your family can remain in the home and that they won’t have to pick up the mortgage tab in your absence.

Do you have anything saved?

You don’t necessarily have to have anything saved for loved ones should you pass away. But if you want to – and currently don’t have much of a nest egg – then life insurance can help fill the gap. Remember: Savings don’t have to be just what you have in the bank. It can also be the equity you have in your home. 

But if you don’t have both savings and equity – or are unhappy with the amount of either – then consider life insurance. Retirees can potentially obtain a policy for hundreds of thousands of dollars for less than $100 a month.

Get a free price quote now to see how much it could cost.

The bottom line

So do you need life insurance if you’re retired? The answer is personal. 

If you still have financial dependents then it would be smart to apply for a policy. Similarly, if you have any outstanding debt that would otherwise get transferred to loved ones, then you should pursue life insurance as a way to pay that off. And if you want to leave a nest egg for relatives – and don’t have the savings or equity to do so – a life insurance policy could be an effective alternative.

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