Do You Really Need Life Insurance in Retirement?

By Haughn Insurance – Dublin, Ohio

When it comes to financial protection, we like to keep things simple: If you love someone or owe someone, life insurance matters. But what happens after you’ve paid off the house, the kids are grown, and retirement is finally here? Is life insurance still worth it? And what about the disability coverage you have at work—does it go far enough? Let’s tackle the big questions.

1. Do You Still Need Life Insurance in Retirement?

The short answer? Maybe. The better answer? It depends on your goals.

If you’ve built enough wealth to cover final expenses, pay off any lingering debts, and ensure your spouse can maintain their lifestyle, you might be okay without a policy. But for many retirees, life insurance still pulls its weight:

  • Covering final expenses like funerals, medical bills, or outstanding loans.

  • Providing for a surviving spouse—especially if your pension doesn’t continue after you pass.

  • Leaving a legacy to your children, grandchildren, or a favorite charity.

  • Paying estate taxes to preserve generational wealth.

And here’s something many people don’t realize: Permanent life insurance can offer tax-advantaged cash value growth you can tap into while you’re still alive. It’s not just protection—it’s planning.

2. Is Your Work Disability Coverage Enough?

Group disability insurance is a great start, but let’s be honest—it’s rarely enough.

  • Most plans only cover 60% of your income.

  • Bonuses and commissions? Often not included.

  • Benefits may cap out after a certain amount—leaving higher earners underinsured.

  • If your employer pays the premium, the benefit is likely taxable.

We recommend this simple test: Could you comfortably pay your bills if you lost 40% of your income? If not, it’s time to explore supplemental disability insurance.

And don’t wait until you’re sick or injured. The best time to buy disability insurance is when you’re healthy and insurable. Waiting could cost you more—or leave you unprotected entirely.

3. How Much Life Insurance Do You Actually Need?

There’s no one-size-fits-all number, but here’s a quick formula to start with:

(Annual income) x (Years your family needs support) + Debts + Education costs – Existing assets = Coverage goal

Example:

  • $100,000 salary

  • 15 years of income needed

  • $200,000 mortgage

  • $150,000 for college

  • $100,000 in savings

       = $1.75 million in recommended coverage

Of course, everyone’s situation is different. If you’re raising kids, building a business, or caring for aging parents, your needs will reflect that. The good news? Life insurance is more affordable than most people think—especially when you’re young and healthy.

Let’s Talk

At Haughn Insurance, we don’t believe in scare tactics. We believe in smart planning. Whether you’re a young family just starting out or you’re five years into retirement, our advisors are here to help you make informed, confident decisions about your protection.

We’re based in Dublin, Ohio—but we work with individuals and businesses across the country. Life insurance, disability coverage, retirement planning—whatever the question, we’ve got answers that make sense.

Let’s have a real conversation.
Give us a call or stop by our office—we’ll even put the coffee on.