Many people wonder whether they require life insurance during retirement.
Usually they do not.
For one, the odds of dying at an older age is higher, and so also the odds of paying a higher premium on the life insurance.
One of the main reasons why people take out a life insurance policy is to ensure that their family members are taken care of in case of any eventuality.
Also, life insurance forces a person to start saving or at times it works as a source of tax deferral.
However, the latter two reasons are secondary in nature.
When a person retires, it is a foregone conclusion that they person is not depending on his job for his money.
At a time like this, his financial needs are taken care of by retirement savings plans like 401k, IRA or Roth IRA.
When you die, all your assets will be passed on to your surviving spouse via proper estate planning and making use of a will.
If you are getting Social Security benefits, then your spouse will continue to receive them as a widow or widower.
So, taking all these things into consideration, in all probabilities, your spouse will continue to have the same standard of living even after you die.
So, the main reason for taking life insurance -- financial security of your family -- is done away with.
While most average older people should not think about getting a life insurance policy during retirement, you can think of it if you have a large estate or want to use the insurance to pay for the estate tax.
If you are retired and living on a tight budget, insurance is an unnecessary expense.
Instead, use this money to pay for your prescription medications and food.