Do you need life and health insurance at retirement?

Is it still useful to have life and health insurance once you've retired? Retirees may find life and health insurance particularly useful for several reasons, such as:

1. Settling funeral expenses in advance

Financial planners generally estimate funeral expenses at $10,000 (funeral home, religious service, burial, tombstone and often a reception for loved ones).

The $2,500 death benefit provided in Quebec by the provincial pension plan covers only a portion of these costs. The benefit is paid to individuals who have made sufficient contributions to the plan, i.e., most workers in Quebec. It is added to other estate income and therefore taxable.

2. After-death taxes

When a person dies, the tax implications can be significant, which is why some people take out insurance to protect the value of property bequeathed to loved ones. When the time comes, the insured amount will cover the amount due in taxes.

3. Inheritance and planned donations

You can also take out life insurance to leave a financial inheritance to your loved ones or to make a donation to a charity or research organization, for example. Of course, these are personal, not financial decisions.

Meet with a financial security advisor for advice on the best life and health insurance coverage for your situation.