As retirement approaches, you may wonder if you need Life Insurance. In an ideal world, you would have an empty nest, self-sufficient children, a paid-off mortgage, and retirement adventures planned. But life is rarely that straightforward. It is increasingly common that retirees have adult dependants at home, mortgages, and debts yet to be cleared. Retirement looks vastly different in the 21st century as we work and live longer.

Therefore, Life Insurance for seniors can be just as important as life insurance in your earlier years. For example, Life cover can help by providing a lump sum to assist your nominated beneficiaries (such as your dependents) with unpaid debts which might be connected to your assets. Thinking ahead to your twilight years and eventual death, Life Insurance cover can help avoid financial stress for your family when faced with your funeral or estate costs. 

You may want to acquire life insurance upon retirement for several key reasons. Check eligibility ages before you apply.

1. Your death expenses 

Funerals can cost anywhere from $4,000 to $15,000 for example. If you have not pre-planned for that cost your family will need to pay for it. Estate fees are also expensive as there may be legal fees and inheritance tax that your loved ones also need to cover. A life insurance policy can provide a lump sum to help your loved ones settle these final expenses.

2. Outstanding debts

Even though you are about to retire you may still have a mortgage, credit card debts, or a personal loan you are paying off. An insurance lump sum could pay some or all these debts thus not adding to your loved one’s burden when you pass away.

3. Your financial dependants

You may be still financially responsible for others such as your spouse or adult children. Life Insurance can give you peace of mind as a senior should you die or be diagnosed with a terminal illness, potentially allowing your partner to continue with plans such as travel, renovating, or long-awaited retirement dreams. Life Insurance for seniors can uphold your wish that your children are financially supported after you are gone.

4. Estate equalisation

Life Insurance provides a solution to estate equalisation dilemmas. It can help allow you to keep your business, holiday home, and other assets in the family by leaving your assets to one beneficiary in your will while providing others with a lump sum from your Life Insurance policy.

5. To leave a legacy

According to the Australian Charities and Not-for-profits Commission (Aust Gov), Australians are among the most generous people in the world per capita when it comes to making donations to worthy causes. Many seniors use Life Insurance to be able to leave a cash benefit to their preferred charity or loved ones. 

Life Insurance is worth considering at any age if you have a spouse or other dependants relying on you financially, a mortgage you are still paying, or you wish to protect loved ones against the monetary cost of your death.