If your spouse would lose a pension or Social Security check when you die, life insurance can fill that gap. Most retirees also want a small policy for final costs.
When one spouse dies, the smaller Social Security check usually stops. The survivor keeps one check, not two. SSA's average for an aged widow or widower was $1,919 a month in January 2026.
Social Security pays only a one time $255 at death, and only to some spouses or children. That will not cover a funeral.
A small whole life policy is the usual way to cover final costs. Some retirees also use life insurance to leave money to kids or grandkids. LIMRA says 39% of owners named leaving an inheritance as a reason.
Tips that help
- Ask your pension plan what your spouse gets if you die first.
- Cover the funeral with a small whole life policy.
- Keep paying any policy you already own if you still need it.
- Review your beneficiaries. The NAIC says to check after life changes.
- Do not cancel an old policy until a new one is in force.
Coverage that fits
Common questions
Should I keep my old policy?
Often yes. Your health and age may make a new one cost more. The NAIC warns not to cancel until a new policy is in force.
Is the payout taxed?
Usually not. The IRS says death benefits are generally not income to the beneficiary.
How do I claim the $255?
Apply with Social Security within 2 years of the death, SSA says.
