The common wisdom is that insurance in retirement is a waste of money. But there are situations where you may need insurance to protect your financial security. The relative importance of different categories of insurance is likely to be different compared to your working years, and it is important to assess your own circumstances carefully to determine your need for insurance in retirement. Here are some circumstances where insurance is recommended.
For income replacement
Life insurance may be relevant in retirement if income from a second career forms a significant portion of the retiral income. This is typically the case in the early years of retirement. It is important for the person earning the income to have life insurance, so that the income being earned in retirement is compensated in the event of death. In some cases, the retirement income may be from a pension, which may reduce on the death of the primary pensioner. Life insurance will help replace the lost pension so that the household can continue to manage its expenses. If you have financial responsibility of your children or grandchildren even in retirement,
