Life Insurance Needs Calculator (Senior)
Calculate how much life insurance a senior needs to cover final expenses, debts, and legacy goals.
Results
Visualization
How It Works
Life insurance needs change in retirement. The focus shifts from income replacement to covering final expenses, paying off debts, and leaving a legacy. Many seniors are over- or under-insured for their current situation.
The Formula
Insurance Gap = (Final Expenses + Debts + Income Replacement + Legacy) − Existing Coverage
Variables
- Final — Funeral, burial, and estate settlement costs
- Debts — Outstanding mortgage, medical bills, credit cards
- Income — Annual income × years spouse needs support
- Legacy — Charitable giving or inheritance goals
Worked Example
$12,000 funeral + $15,000 debts + $100,000 income replacement (5 years) + $10,000 legacy = $137,000 total need. With $0 existing coverage, you need $137,000.
Practical Tips
- Final expense/burial insurance ($5,000-$25,000) is available without a medical exam for most seniors.
- If your spouse has their own retirement income, you may need less income replacement coverage.
- Consider whether your existing savings and assets could cover these needs without insurance.
- Guaranteed issue policies accept everyone but have higher premiums and a 2-year waiting period for full benefits.
- Term life insurance is cheapest but may be hard to find or expensive after age 70.