I’m 63 and plan to retire soon. Should I keep my life insurance?

February 18, 2026 — 4:01am

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I am 63 and plan to retire at 65, so I have about two years left to work. All of my insurance is held inside my super fund. I currently have death cover of $800,000, total and permanent disability (TPD) cover of $200,000, and income protection of $10,000 per month. What do you generally suggest people do with their insurance as they approach retirement? Do we really need this level of life insurance at this stage of life, and when is it beneficial to reduce or cancel cover?

The purpose of insurance is to protect you against events that would leave you in serious financial difficulty if they occurred, and you were uninsured. Insurance comes at a cost, and that cost rises each year as you get older.

As you approach retirement, it makes sense to reassess what financial damage would actually be done if you died, became disabled, or were unable to work. If your debts will be cleared at retirement and your wife would be financially secure without your income, the need for large amounts of life insurance reduces sharply.

If you are confident your family would be financially secure without insurance, it is sensible to reduce or cancel cover rather than keep paying rising premiums by default.

I have $100,000 which I am considering giving to my adult daughter.........

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