Talking about senior life insurance is not a fun conversation. But do you really need a life insurance policy for seniors?

It depends on your personal life and financial situations, who relies on you, and your income or assets. The financial consequences of death can be catastrophic. At a time when they are most vulnerable emotionally, the people we leave behind can also be hit economically.

1. Funeral Expenses

The National Funeral Directors Association claims that the average funeral in 2006 cost more than $7,300, and that did not include cemetery costs. Add in a headstone, flowers, travel expenses, the cost of ongoing grave care, and it's not unusual for people to write a check for well over $10,000.

2. Estate Administration

Even the simplest, most straightforward estate plan will have some unexpected costs involved. Fees to executors and their attorneys, court or probate costs, filing fees, appraisals if the estate includes unusual or high-ticket personal property, maintenance of the estate property, or auctioneer's fees. If the estate is contested in any way, figure on those costs going up.

3. Debts

Any debts left unpaid when you die will have to be covered from your estate. Medical bills from a final illness, if not covered by insurance or Medicare, could be particularly bad. Unpaid income and property taxes take another gulp. If you've got a car loan, bank loans, credit card or other debt, someone's got to pay it.

4. Estate Taxes

While this is not as much of an issue as it used to be, it could still take a chunk of your estate. These days, with home equity and retirement accounts, many seniors have a hefty net worth. If all your assets add up to more than the estate tax threshold, your survivors may have an enormous bill to pay. Would your spouse have to sell the house to pay the taxes? Or liquidate other valuable assets? A life insurance pay-out could cover that tax, if necessary. Consult a tax professional to see if you're likely to be liable for estate taxes.

Life Insurance Savings

You need to cover final expenses. It's fairly easy, and not terribly expensive, to find a term life insurance policy just big enough to cover final expenses. But are there other reasons to have senior life insurance? It could be easy to think not. The kids are gone and on their own, so there's no need to support a young family. Your spouse will continue to get the pension check and social security payments after you're gone.

Your job now is to evaluate your own situation and that of anyone who will be affected financially by your death. If you can see that they will have to dig deep into pockets that might not be deep enough to survive and thrive, senior life insurance should definitely be on your radar.

It's not hard to find policies to compare and chose from. With the baby boomer generation getting older, the number of Americans 70 and older is expected to double by 2035. More and more companies are eying this growing market in life insurance for seniors. And that has brought rates down. It's easier than ever to find an affordable life insurance policy if you're over 55.

Do some life insurance comparison shopping at InsWeb.com. Compare quotes from several companies, because the difference in the same coverage from one company to another could be hundreds of dollars a year.