Why Senior Citizens May Not Need To Buy Life Insurance?

Life insurance is an important risk mitigation tool for most people, but is it also essential for seniors? Well, every senior may not need a life insurance cover.

Amit Sethi
November 2, 2023


When you buy a life insurance policy, the premium may increase depending on factors like the size of the policy and the tenure. So, people often prefer taking a life insurance policy only till the age they plan to take retirement. Some people look for a life insurance policy for a longer period, i.e., beyond their retirement age, but does it really make sense?


Here are some important points that explain why seniors may not need to buy life insurance cover.

Accomplished Goals Towards Dependent Family Members

People buy a life insurance policy for the financial security of their dependent family members. Especially, when a person has several financial obligations to fulfil for their dependent family members such as the education of their children, their marriage, paying regular home expenses, etc. they need life insurance for their financial security. However, as people get closer to their retirement, they usually achieve most of their financial goals and fulfil their financial obligations towards their dependent family members. So, seniors don’t need a life insurance policy as they don’t have any dependent family members or a financial obligation to fulfil.

No Existing Debt Obligations

When you have a debt obligation remaining at the time of retirement such as a home loan, car loan, personal loan, etc., it is always better to make a financial arrangement for your family members or your legal heir so that they are able to repay the outstanding loan in case of your premature death. Life insurance is needed in such cases. However, seniors retiring debt-free usually don’t need a life insurance policy.

Have Sufficient Retirement Corpus To Support The Living Of The Spouse

You may not have financial obligations towards dependent family members or no debt obligations at the time of your retirement, but when you are no longer there, your surviving life partner may require a greater financial cushion. If you have already planned and have built a sufficient financial corpus for your spouse, you may no longer need a life insurance policy.

Situations When Seniors May Need Life Insurance

As discussed, there’s always a need for life insurance cover to support your dependent family members. If you want to extend the extra financial cushion for the next generation along with the legacy you have already planned to leave behind, then also life insurance policy can be taken by the seniors. A life insurance policy can also help seniors get a loan after their retirement to meet financial emergencies because it allows the lender to recover their money on the premature death of the borrower.

The author is an independent financial journalist

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