When people near retirement they often wonder how much, if any, life insurance they should have during retirement. When you are working and have financial obligations such as a mortgage, college funding, etc., you have a need for higher levels of insurance. In retirement, people often figure they don't have to worry about replacing lost income; therefore, the need for life insurance is non-existent. However, this may not always be the case. Generally, there are two main uses for life insurance in retirement: to replace lost income or to pay estate tax upon death. For instance, you may still have dependents that need your Social Security or pension income and would suffer a financial hardship in the event of your death. When it comes to estate planning, life insurance is often used to pay estate taxes rather than forcing heirs to liquidate other assets. To determine whether insurance in retirement would be necessary, you should start by asking yourself, "Will someone suffer a f...