People often go for life insurance when they’re in their early 30s. It seems to be the ideal time as they have their whole life ahead of them and naturally, anyone would want to feel secure. But what about the people on the other spectrum? People who have retired, their children are grown and are settled. They have put together a reasonably solid income plan with Social Security, pensions, and annuities supplemented by investments and retirement accounts. They often wonder, do I need life insurance if I have a pension?

Well, first of all, life insurance is intended to help the beneficiaries cope with the expenses incurred from the loss of a loved one. And life as we know it is unpredictable. It’s important to be ready for anything that life throws at us and life insurance could be the answer to that.

Life insurance safeguards you from any hardships of financial loss and the primary concern is the loss of income. So if your family remains secure after your passing and they don’t experience any financial loss with the support then logically there’s no need for life insurance.

But what if that’s not the case?

Do you need life insurance?

You need to ask yourself, Will someone experience a financial loss when you die? If the answer is no, then you don’t need life insurance. For instance, let’s say you have a steady source of retirement income from investments and pensions and you’ve chosen an option that pays 100% to your surviving spouse. Then your death wouldn’t have any effect on their income.

Do you want life insurance?

Even if there will be no substantial financial loss experienced upon your death, you may like the idea of paying a premium now so that family, or a favourite charity, will benefit from your death. Life insurance provides you with an option to leave a substantial amount to a charitable cause, children, grandchildren, nieces, or nephews. So life insurance after retiring could be a great way to spread happiness.

Situations Where Life Insurance Is Needed

Everyone has a unique situation regarding their finances but below are some considerations for continuing life insurance policies:

  • Retirees who will lose a substantial portion of the family income when one spouse dies
  • Families or couples in their peak earning years that are saving for retirement
  • Parents whose children are not adults
  • Business owners or business partners, and employees employed by small businesses
  • Families with a large estate that is subjected to estate tax


Simply put, for people that have substantial financial support regardless of any loss of income, life insurance after retiring might not seem like a necessity. But for people who like to go the extra mile for protecting their families, life insurance is the right step.

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