Life Insurance and Retirement Planning
Use our retirement calculator to estimate your future needs to protect your financial legacy
Life Insurance and Retirement Planning: Why They Go Hand in Hand
When people think about retirement planning, they often focus on savings, pensions, and investment returns. However, life insurance is closely tied to retirement planning, particularly in protecting your family’s financial future.
Even in retirement, the death of a spouse or loved one can cause significant financial strain. You may face the loss of pension income, unexpected medical costs, and estate taxes, which can disrupt even the most carefully designed financial plans.
This is where life insurance is beneficial. It’s not just a safety net, but also a strategic planning tool.
Whether you are the primary income earner or part of a joint financial plan, life insurance helps ensure that your loved ones won’t have to dip into savings, sell assets, or take on debt after you’re gone.
It allows your financial legacy to continue, protecting your spouse, children, grandchildren, and any charitable goals you may have.
Life Insurance and Retirement Planning Are Aligned...
If a death occurs during retirement, these tools help ensure your family isn’t forced to dip into savings or downsize their lifestyle.
So let’s take a look at how life insurance can help you in retirement. We provided a calculator to help you estimate the amount of money you’ll need in your later years.
✅ Preserve Your Estate
Well-structured permanent policies can help cover estate taxes and protect what you’ve worked hard to build.
✅ Replace Lost Retirement Income
Joint life insurance (such as first-to-die coverage) ensures that the surviving spouse continues to receive income, helping maintain their lifestyle to avoid downsizing.
✅ Cover Final Expenses
Final expense insurance helps alleviate the financial burden of funeral costs, outstanding medical bills, or legal fees.
✅ Layered Coverage for Flexibility
Combining term and permanent life insurance allows you to adapt coverage as your needs change, offering both affordability and long-term value.
Got Questions?
We've Got Answers
Do I need life insurance during retirement?
It depends on your goals, but for many retirees, the answer is yes. Even after leaving the workforce, life insurance can help replace lost retirement income, cover final expenses, and shield your loved ones from estate taxes or financial hardship. It’s not just about coverage, it’s about peace of mind.
What if I’ve already saved enough?
Savings are essential, but they aren’t always enough. Life insurance complements your nest egg by providing liquidity when it’s needed most. It ensures your spouse doesn’t have to dip into investments, your estate remains intact, and your family receives a tax-free benefit with no delays or probate.
Which types of life insurance work best in retirement?
Here are a few popular options designed to support retirement planning:
Joint life (first-to-die) insurance: Helps surviving spouses maintain income and avoid lifestyle disruption
Final expense insurance: Covers funeral costs, medical bills, and outstanding debts
Permanent life insurance: Useful for estate planning and creating tax-efficient inheritances
Layered policies: Combine term and permanent coverage to adapt to your evolving needs over time
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“Loved how easy it was to compare and customize the policy coverage amount.”
Mike Chapman
March 2022
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