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You spend most of your adult years working and making ends meet. Most of your income covers the daily cost of living, and there’s not much left for anything else.

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As you near your senior years and retirement, you may see your bills decrease and your savings increase. But unfortunately, this is also when your life insurance likely begins to expire.

You might wonder if it’s worth buying another policy or if you should let it go. Some seniors let it go but regret the decision a few years later and want another policy.

Whatever the case may be for you, the question is – should seniors have life insurance? Is it worth it?

The answer is that it depends.

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Factors to Consider – Life Insurance for Seniors

No two seniors have the exact needs, financially or otherwise. So we can’t say, ‘yes, life insurance for seniors is worth it, or no, it’s not.’

It depends on various factors, including financial and mental factors. For some, life insurance provides peace of mind and allows them to sleep at night; for others, it’s necessary.

Here are some factors to consider when deciding if life insurance for seniors is right for you.

Are you Still Earning Income?

If you still work, you may still want life insurance. Here’s why.

You and your spouse are used to your income and have created a lifestyle around it. If you die, your spouse loses your income and has to grieve you and figure out how to make ends meet.

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But if you’ve already retired and don’t rely on outside income to cover your bills, then life insurance may only be worth it if you have money saved for your final expenses.

If you don’t have a separate account to leave your loved ones to cover your final expenses or to leave your spouse with money, then a small policy, such as a final expense policy, may be needed.

Do you have Outstanding Debt?

If you have a lot of debt, you may need life insurance to help cover it, so your loved ones don’t have to give up a large part of your estate. Your debts must be satisfied from the estate, so think about what that will leave behind.

Are you leaving your loved ones with a financial mess?

If so, a life insurance policy ensures they have the money to pay off the debts and inherit your estate. If you can afford the premiums, it’s an excellent way to guarantee your loved ones’ financial safety.

Do you Support Anyone Financially?

Your kids are likely grown and out of the house, but sometimes life comes full circle. Whether you have an elderly parent living with you or a child who came back home, life insurance is crucial if anyone relies on you financially.

Unless you have enough money to carry your loved ones through the rest of their days, a life insurance policy may be needed.

Will your Estate be Heavily Taxed?

Your estate may be taxed heavily upon your passing if you are a high-net-worth individual. This could leave your beneficiaries with much less than you anticipated.

A life insurance policy can be put in place to cover the estate taxes and leave most of your estate to your loved ones. If you’re concerned about your estate taxes, talk with your financial advisor about life insurance benefits.

Do you Have Enough Saved for End of Life Expenses?

Sometimes it’s not the money you need to leave behind for everyday living but money to cover your final expenses. For example, it’s expensive to bury someone and cover their final medical expenses. If you don’t have $20,000 – $30,000 put aside for this, a final expense policy can help ease the financial burden for your loved ones.

Do you Want to Leave a Legacy?

Finally, you may want to leave a legacy when you die. Whether it’s a little something for each child and grandchild or you wish to donate to charity in your name, a life insurance policy can help you leave a legacy, but you must be able to afford the premiums.

Final Thoughts

Life insurance for seniors can be worth it in the right situation. However, if you’ve set yourself up financially from day one, have plenty of savings, and have your retirement taken care of, it’s likely not worth it.

However, if you don’t have money saved for your end-of-life expenses, support someone still, or have outstanding debt, consider it.

You’ll likely need a simplified or guaranteed issue policy in your senior years. Both policies have higher premiums, but the coverage stops at $25,000 – $100,000, depending on the policy.

Consider your options carefully and exhaust other options, like using a savings account to cover your final expenses before taking out another policy.


Meet Aaron H., a senior life insurance agent from California with 15+ years of experience. With a major in finance, excellent analytical and communication skills, and a passion for helping clients find personalized solutions, Aaron is a trusted advisor in the industry. He stays up-to-date on the latest trends and developments by attending webinars and workshops, reading industry blogs, and writing informative blog posts on this website. Aaron also has a keen understanding of SEO and online marketing, which he uses to help his clients reach a wider audience and get the coverage they need. He cherishes spending quality time with his wife, two children, and elder parents.