5 groups that really do need life insurance

Retirees © Darren Baker/

Retirement is the time to relax, especially if your house is paid off and both you and your spouse are set with retirement income.

But you may still need life insurance as a way to protect your heirs.

For example, a policy could provide funds for your family to pay estate taxes and other expenses associated with your death, including funeral costs.

Retirees also can use life insurance for what Boglioli characterizes as "estate equalization." For example, imagine a situation where a small-business owner has two sons and a daughter.

"The business owner purchases a large life insurance policy to provide his daughter an equivalent share of the value of the business that will go to the boys," she says.

Brian Madgett, a corporate vice president with New York Life, says retirees who take out life insurance can spend the money they have saved over a lifetime without feeling guilty about depriving their heirs of an inheritance.

"Life insurance gives them the freedom and peace of mind to spend all their money and enjoy their retirement, knowing that they will be leaving a legacy in the form of a tax-free death benefit," he says.


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