You've survived being a parent and finally the kids are gone, with all those associated child-rearing expenses—no more sneakers to buy, high car insurance premiums, no band uniforms or college tuition to worry about. Maybe you've even downsized to a smaller place, just the two of you. Your living expenses are under control.

How Much Seniors Life Insurance Do You Need?

Here's how to find out. Sit down with your spouse and gather all your monthly bills—mortgage or rent, utilities, car payments, credit card payments, health insurance premiums, gas, food, church donations, magazines and newspapers, and all the little luxuries that make your life comfortable and pleasant. How much of that monthly expense would disappear if you die. Remember to factor in regular inflation and increases in things like rent, taxes or home association fees. The amount that's left is what your surviving spouse will need to maintain the same living standard they enjoy today.

Now look at your total assets—CDs and bank accounts, retirement accounts, mutual funds, pensions, social security checks, and anything else of value that can be converted into cash to cover living expenses. Subtract any part that will disappear on your death. Now subtract what you can reasonably expect your spouse to have to pay in final expenses—funeral costs, medical bills, taxes, and debts. What's left is how much he/she will have left over to live on. Look at life expectancy tables to try to determine how many years that nest egg will have to stretch to cover. Is there enough?

If the second amount is significantly smaller than the first, you may need seniors life insurance to cover the gap. If the difference is not significant, you might still consider a small policy that would provide just enough in death benefits to cover your final expenses. That way, your spouse will not have to cut into principal or trim monthly expenses to cover those last costs. Life insurance for seniors can provide a safety net.

Remember that life insurance is designed as financial protection. But you might want to think of it more realistically as "lifestyle" protection. You want to leave the people you love in a position to maintain their lifestyle and even give them the freedom to change it as their needs and circumstances change.

Do you need seniors life insurance? That's a question only you can answer. But don't assume that because the kids are gone the answer is an automatic no. By considering all your assets and expenses, you can decide how much protection your loved ones need to deal with the world without you and your financial contribution.