Skip to Content
Family with two children in a bright kitchen indicating a time to learn about why getting life insurance is important.
Why get life insurance

3 not-so-common reasons to maintain coverage

While you may no longer need the level of life insurance coverage you once had, when you have retired, it can still be a good idea to maintain some level of coverage for a variety of reasons.

When you're young and just starting out, there are many important reasons for having a life insurance policy to provide for your loved ones. But what about when you reach retirement age? When the mortgage is paid off and the kids have grown up and are on their own, is life insurance coverage still necessary?

There is no shortage of advice when it comes to continuing your life insurance policy when you are age 60 or older. Some of the more common reasons are to help pay for things such as estate taxes and final expenses. And while those are certainly solid points to consider, we found a few others that you may not have thought about.

Reason to Keep Life Insurance #1: Lingering debt

The economy over the past decade has taken its toll on many Americans. While our parents may have entered into retirement debt-free, many baby boomers are still sitting on a mortgage and other debts that could last another decade or more. If you have debt and don't want to leave it as a parting gift to your spouse or other loved ones after you die, you might consider keeping your life insurance policy when you retire.

Reason to Keep Life Insurance #2: Income replacement

Even though many Americans begin claiming their Social Security benefits between the retirement ages of 62 and 65, some are choosing to remain working on a part-time basis to help supplement their income. According to the Social Security Administration (SSA), Social Security benefits will replace approximately 40 percent of an average earner's income in retirement.1 If you haven't saved enough and have a spouse or other family member who is depending on you to bring in this supplemental income to meet everyday living expenses, then life insurance can help provide for them after you're gone.

Reason to Keep Life Insurance #3: A pension that dies with you

If you have a defined benefit pension, you'll generally have two types of payout options when you retire: a single life benefit or joint survivorship benefit. With the single benefit option, your benefits are based on your expected lifetime. Therefore, when you die, your pension stops. However, a survivorship payout is based on both you and your spouse's lifetime. If you die before your spouse does, he or she will continue to receive benefits from your pension. If you have a pension with no survivorship option, life insurance could replace this lost income.

Discover helpful tips on finding affordable life insurance for seniors or using cash value life insurance as part of your retirement plan





Arrows linking indicating relationship

Related Articles

Happy family of three enjoying quality time outdoors.

The value of life insurance

Learn more
Senior couple walking in the woods

How to avoid having your life insurance policy lapse

Learn more
Woman in her kitchen enjoying wine and a snack.

Different life stages may create different life insurance needs

Learn more

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and is meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Learning Center articles may describe services and financial products not offered by Protective Life or its subsidiaries. Descriptions of financial products contained in Learning Center articles are not intended to represent those offered by Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax-related decisions. For information about Protective Life and its products and services, visit

Companies and organizations linked from Learning Center articles have no affiliation with Protective Life or its subsidiaries.