Reaching your 60s is a significant milestone. For many, it’s a time of transition, winding down a career, stepping into retirement, paying off long-standing debts, and reevaluating financial priorities. With fewer dependents, a paid-off mortgage, and a growing focus on enjoying the years ahead, it’s natural to ask:

“Do I still need life insurance?”

This is a very common question, and the answer is not one-size-fits-all. For some, life insurance remains a critical part of financial planning, offering protection for a spouse, covering final expenses, or leaving a legacy. For others, it may no longer be necessary, especially if they’ve built up enough savings or no longer have financial responsibilities tied to others.

Whether you already have a policy or are considering buying one later in life, this guide will walk you through the key factors to consider, the types of life insurance that make sense after 60, and real-world examples to help you decide what’s right for you.

By the end, you’ll have a clear understanding of how life insurance can (or can’t) serve you in your 60s and beyond, so you can make an informed, confident decision that aligns with your financial goals and peace of mind. The answer? It depends. In this guide, we’ll help you understand the factors to consider, the types of policies available, and whether keeping or buying life insurance after 60 makes sense for your goals and financial situation.

If you’re rethinking your financial path in retirement, you may also like How Much Do You Really Need to Retire Comfortably?

Why People Get Life Insurance in the First Place

Life insurance is meant to:

• Replace lost income after someone dies
• Pay off debts (like mortgages, credit cards)
• Cover funeral and burial expenses
• Leave a legacy or donation
• Provide for a spouse, children, or other dependents

If these needs still exist at age 60 or beyond, life insurance may still be valuable.

Do You Need Life Insurance After 60?

Here are the key questions to ask yourself:

1. Do You Still Have Dependents?

If your spouse, adult children, or others rely on your income or care, life insurance can provide a safety net. For example:

• A spouse who doesn’t have retirement savings
• An adult child with disabilities
• Grandchildren you help support

2. Do You Have Outstanding Debt?

If you still owe:

• A mortgage
• Car loans
• Credit card debt
• Personal loans

…life insurance can prevent your loved ones from inheriting that financial burden.

3. Will Your Final Expenses Be a Burden?

The average funeral in the U.S. costs $7,000 to $12,000. If you don’t have savings to cover this, a small policy (sometimes called final expense or burial insurance) can ease the pressure on your family.

4. Do You Want to Leave an Inheritance?

Life insurance can be a tax-free way to leave money to heirs, especially if your estate is small or you want to ensure equal distribution.

5. Is Your Estate Large or Taxable?

High-net-worth individuals may use life insurance to:

• Cover estate taxes
• Preserve family wealth
• Fund trusts

This is more common among people with estates over $13.61 million (2024 federal estate tax exemption).

If you’re considering alternatives to traditional insurance, take a look at Cashing Out Your Life Insurance Policy: A Complete Guide

When You Might Not Need Life Insurance After 60

It may not be necessary if:

• You have no debt
• Your spouse is financially secure
• Your children are self-sufficient
• You have enough savings to cover final expenses
• You’re living on a fixed income and premiums are unaffordable

In these cases, canceling or reducing your coverage could free up money for other needs.

Types of Life Insurance for People Over 60

1. Term Life Insurance

A term life insurance policy is the most straightforward type of life insurance. You pay a fixed premium for a set period, usually between 10 and 30 years, and if you pass away during that term, the insurer pays a death benefit to your chosen beneficiary or beneficiaries.

• Coverage for a set period (e.g., 10, 15, or 20 years)
• Lower premiums than whole life
• Best if you only need coverage temporarily

Example: A healthy 60-year-old male might pay around $100/month for a 15-year, $250,000 term policy.

2. Whole Life or Permanent Life Insurance

Whole life (or permanent) life insurance provides lifelong coverage. As long as you continue paying the premiums, your policy remains in force, and upon your death, your beneficiaries receive the guaranteed death benefit. In addition, these policies typically include a cash value component that grows over time, which you can borrow against or withdraw during your lifetime.

• Coverage lasts your entire life
• Builds cash value over time
• More expensive than term life
• Can be used as part of estate or legacy planning

Note: Buying whole life after 60 is costly, consider it only if it fits your long-term goals and budget.

3. Final Expense Insurance

Final expense insurance, sometimes called burial or funeral insurance, is a type of whole life policy designed to cover end-of-life costs such as funeral expenses, medical bills, or outstanding debts. It typically offers a smaller death benefit compared to other life insurance types, making it more affordable and accessible, especially for older adults.

• Small permanent policies ($5,000–$25,000)
• Specifically for funeral costs and small debts
• Easier to qualify for (even with health issues)
• Premiums stay level

4. Guaranteed Universal Life (GUL)

Guaranteed Universal Life (GUL) insurance combines features of term and permanent life insurance by providing lifelong coverage with fixed premiums and a guaranteed death benefit, but typically with little to no cash value accumulation. It is often chosen as a cost-effective way to secure permanent protection without the investment component of other permanent policies.

• Mix of term and whole life
• No cash value but lasts for life
• Lower premiums than whole life
• Good option for estate planning or legacy goals

For those thinking about organizing documents alongside insurance decisions, check out Gathering the Documents You Need to Create a Living Trust

How Age and Health Affect Life Insurance After 60

• Premiums increase with age, so the sooner you apply, the better.
• Health issues (e.g., diabetes, high blood pressure, heart conditions) can raise premiums or make some policies unavailable.
• Medical exams may be required for larger policies, but many final expense and simplified issue policies skip this.

Tips for Choosing the Right Policy

1. Define your goals: Are you protecting income? Covering burial expenses? Leaving a legacy?
2. Review your finances: Do you need insurance, or is it a luxury?
3. Compare quotes: Shop around and use independent agents to compare different carriers.
4. Avoid high-pressure sales tactics: Especially for expensive whole life policies that may not match your needs.
5. Look into group policies: Some retirees maintain life insurance through past employers or associations—check availability.

Real-Life Examples

Margaret, 62 – Final Expense Plan

Margaret is retired and lives on Social Security. Her children are grown, but she doesn’t want them to pay for her funeral. She buys a $15,000 final expense policy for $45/month.

Kevin, 65 – Term Life for Mortgage Protection

Kevin still owes $100,000 on his mortgage. He gets a 15-year term policy for $250,000 to cover the debt and support his wife if he dies before the loan is paid off.

Diana, 67 – Cancels Her Policy

Diana has no debt, no dependents, and $500,000 in savings. Her term life policy is expiring. She decides not to renew it, saving $150/month in premiums.

The Bottom Line

Do you still need life insurance after 60?
It depends on your personal situation, but here’s a quick recap:

✅ You probably need it if:

• You have dependents
• You have debts
• You want to cover final expenses
• You plan to leave an inheritance

❌ You might not need it if:

• You’re debt-free
• You have strong savings
• Your family is financially independent
• Premiums are straining your budget

Final Thoughts

Life insurance is not one-size-fits-all, especially after 60. The key is to review your personal goals, financial situation, and family needs. Whether you maintain, cancel, or purchase a policy, make sure your decision is based on facts, not fear.

Still unsure? Talk to a certified financial planner or insurance advisor, preferably one who works independently, not on commission.

Peace of mind matters at every stage of life. Life insurance can offer it, if and when you truly need it.

If you want to leave your family with clarity and security, don’t miss The Ultimate Guide to Creating a “Death Binder”: Everything Your Loved Ones Need After You’re Gone.