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Do Retired People Need Life Insurance?

Many retired people find that they do not have life insurance any more. They may have had a term life insurance policy that they purchased when they were younger, their kids needed support, and they still had large home mortgages to cover. Or they may have just taken advantage of a group life insurance plan at work, and that plan did not follow them into retirement. So we find that may people are looking for life insurance over age 65, or even older.

The plan, of course, was that when they were older, they would not need life insurance coverage any more. In theory, savings could cover any debts or obligations, kids would be self supporting, and their homes would be paid off. However, these days, that plan did not work out for many people. A job loss may have meant that a second mortgage was needed to cover bills, or that a mortgage needed to be extended. Kids may not have finished school on time, and many adult children still live at home or need help from parents. And now, even though people are in their retirement years, they still may need to work to cover debts and obligations, and others would suffer if they passed away.

Of course, one big obligation that retired people plan for are final expenses. US funerals can cost $8,000 or more, and it can be a burden for another family member to come up with cash like that. The good news is that people can expect to live longer than they did even 10 years before, and life insurance companies recognize that. Many senior life insurance policies are available. You can find term life insurance for older people, or special final expense insurance policies, which are usually whole life. If you do not understand whole life, look at this page: whole life insurance explained.

life insurance, senior citizens, retirement

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