When you’re living on a fixed or semi-fixed income in retirement, every expense matters. It’s natural to ask, “Is my life insurance worth what I’m paying?”

The answer isn’t just about the cost—it’s about what risks the premium protects you from. For some, that means a death benefit to protect loved ones. For others, it also means the ability to tap into a policy’s cash value while still living. This is a feature that can bring financial flexibility when you need it most.

The Value of Risk Protection

• Think of life insurance like a seatbelt. You hope you’ll never need it, but if the moment comes, you’ll be glad you have it. Think of the cost as the price of knowing that, if the worst happens, your loved ones won’t be left facing financial turmoil. And if you have a cash value life insurance policy, you may even be able to use it to cover your own risks during your lifetime.

Here’s the choice in its simplest form:

• Option 1: Live with a somewhat likely risk that could diminish your finances.
• Option 2: Live with that same risk but have a safety net in place for a set monthly cost.

The monthly premium is the bridge between “risk + financial destabilization” and “risk + financial protection.”

Death Benefit Examples

Imagine you’ve spent decades building a retirement plan for you and your spouse. Now, consider what might happen if you passed away unexpectedly:

• Would your spouse have enough income without your Social Security or pension?
• Would there be enough to cover final expenses, medical bills, or debts?
• Would the inheritance you intended to leave still be intact?

For many, the loss of one income stream or a sudden large expense can derail even a well-built retirement plan. Life insurance can prevent that from happening.

Cash Value Examples

• Covering unexpected medical costs without having to dip into your investment portfolio during a market downturn.
• Helping a grandchild with college tuition without taking a taxable distribution from your IRA.
• Funding a major home repair (like a new roof or HVAC system) without adding debt or selling assets at a bad time.
• Bridging income gaps—for example, if you delay Social Security to increase your future benefit, cash value can help supplement income in the meantime.

In each of these situations, tapping your policy’s cash value can help you solve a problem without dismantling your broader retirement plan.

When Is It Too Expensive?

A policy might be too expensive if:

• The premiums are so high they force you to cut back on essentials.
• Your need for both the death benefit and living benefits has significantly declined.
• There are other policy options that offer similar benefits for less cost.

The Bottom Line

Life insurance isn’t just about getting the cheapest deal, it’s about making sure you’re paying for protection that matters. Life insurance isn’t for everyone, and isn’t for all risks or risk likelihood levels. But depending on your risks, needs, and financial situation, it can be a key solution in your retirement picture that can make the difference between surviving retirement and thriving through it.

So, ask yourself:

Would you rather have a somewhat likely risk that could drain your savings… and no extra pool of funds to help you?

Or pay a predictable monthly amount for the peace of mind that comes with knowing you have both protection and access to cash if you need it?

For many retirees, that flexibility is worth paying for. Contact us and we can help you determine if your current policy is still the best fit, or if adjustments could give you the same protection and benefits for a better value.