How should couples plan life insurance around retirement income?

Retirement creates a new dimension of life insurance planning for couples. The question shifts from income replacement during working years to survivor income protection in retirement.

The key risk: many retirement income sources — pensions, Social Security, annuities — reduce or eliminate the benefit when the recipient dies. A surviving spouse may suddenly have significantly less monthly income despite having the same living expenses.

Social Security survivor benefits allow a surviving spouse to receive the higher of their own benefit or the deceased spouse's benefit — but not both. If both spouses received comparable amounts, the household loses one benefit entirely. Life insurance can offset this reduction.

Pensions often offer a joint-and-survivor option that provides a reduced benefit to the surviving spouse — but the couple may have elected a higher single-life benefit at retirement. If the pensioner dies first, the surviving spouse has no pension income. Life insurance on the pensioner provides an alternative safety net.

Nevada couples with significant assets accumulated over long careers may also use life insurance to equalize inheritances, fund estate settlement costs, or provide charitable gifts. Agents in our network can help you build a retirement income protection strategy that accounts for all income sources. Actual premiums vary by carrier, age, health status, and coverage amount.