Do you need life insurance if you are retired?

Life insurance seems to make a whole lot more sense when you’re building a career, and especially if you’re married and have kids. After all, there’s so much on the line: your kids’ health and education, your mortgage, and a lifestyle you’ve worked hard to build up.

But when you’re retired and have health issues, does life insurance still make sense?

Life insurance on a fixed income

So maybe half a million dollars in coverage isn’t an option, the same way many retirees decide they don’t need a second car. Granted, if your kids are financially independent, you’re debt-free, and you’ve saved enough, life insurance may not be the right option for you. But how many Canadians are actually in that position?

How to decide if life insurance is right for you

Most retired Canadians, in fact, have to deal with these three factors:

  1. Costs related to death of spouse: In addition to a funeral, which can be costly, other expenses might include taxes, probate fees, and fees for a notary, lawyer and/or executor.
  2. Seniors’ debt: According to a 2017 article in the Financial Post, Canadian seniors are outpacing the rest of the population in their indebtedness — debts that will have to be settled by their estate.
  3. The future is unknown: That’s obvious, no matter what your age. But in retirement it has special significance. Your own or your spouse’s health can deteriorate and may require special care.

Get only the coverage you want

That’s where life insurance plans, such as CoverMe® Guaranteed Issue, come in. You can get coverage of $5,000 to $25,000, which is enough to partially or fully offset the cost of a funeral, and even leave a legacy your loved ones can remember you by.

Plus, it’s called Guaranteed because it is. Specifically designed for seniors, the plan doesn’t require health questions or exams. It’s easy to sign up and coverage begins the instant you make the first payment.

The other factor to consider is that the older you are, the higher the premiums. So signing up earlier makes good sense, especially as rates lock in for life.

Life insurance is always a personal decision, whether you’re at the start of a career or in retirement. Weigh all the factors, and talk to a licensed insurance agent.