I’m Retired…Do I Still Need Life Insurance?

You may have previously had a life insurance policy while you were working and still paying off that mortgage.  Now that you're retired and likely to have paid off your mortgage, you're likely to be enjoying the savings that you're making by not paying out on your insurance policy - however there are reasons why you may still consider life insurance at this stage of your life.

Do I actually need it?

What is your current financial situation?  If you and your partner have a regular source of income from pensions or investments that will continue after you die then you might not need to consider life insurance.  However if you pass away, and your partner is not entitled to claim your pension - or you are still paying off a mortgage or other debts, then a life insurance policy would ensure that this is taken care of following your death.

Even if you feel that you don't really need life insurance to cover any debts you may wish to provide a lump sum to a beneficiary after your death.  You could consider taking out a small policy - giving up some of your income each month could be a way of leaving a substantial amount to a family member or even to a charitable cause.

How much life insurance do I need?

Again, this will depend on your individual circumstances.  If you are just worried about covering any debts but don't need to leave any extra then take out a policy which covers your outstanding balance.

If you're taking out your policy to make sure your loved ones benefit financially, then you'll need to work out how much money they would need to comfortably live off following your death.

Although it's something that many of us would like to think about, but it may help to calculate the costs of a funeral and add this into your requirements.  Funerals can be an expensive affair so having a policy that will cover the cost of this will save your partner or family struggling when it comes to giving you the send off that you deserve.

What type of policy can I take?

There are different life insurance options available for the over 50s.  A whole of life insurance policy will cover you until your death and offers a guaranteed payout - whether you're 55 or 105.

Because the insurer HAS to pay out for this type of policy, they can be expensive so make sure you shop around to try and find the best deal.
Short term policies are also available which may provide you with a much more affordable option.  If you're 60, you may decide to insure yourself for a further 15 years until you reach 85.  However, if you live to the ripe old age of 86 or beyond, you'll no longer be insured so remember to take this into consideration.

For more information on life insurance and to find a suitable policy for your needs, speak to an adviser today.  They'll be able to search the market to find you a great deal and help you to make the right decision.

The above post is intended to be informative but does not constitute advice - financial, legal or otherwise. Any opinions given are the author's own and do not necessarily reflect the views of SO Media or the Mitchell Farrar Group.