Harry Gross: Does aging couple need life insurance?

DEAR HARRY: My husband is 70, and I am 69. We both get Social Security checks, and he gets a pension. He had a life-insurance policy paid for by his employer while he was working, but he let it lapse when he retired. Neither of us has any life insurance now. We have no children, and we own our house and car free and clear. We have long-term-care insurance, but not enough to cover all costs. If I die first, he'll lose my Social Security, but there will also be less cost for my living expenses. If he dies first, I'll get his Social Security and three-quarters of his pension. My husband insists that neither of us needs life insurance. I think we need life insurance on him to make up for my loss of one-quarter of the pension. I do not think that's fair. Can you help us?

WHAT HARRY SAYS: Under present conditions, will you have enough to live on if he dies first? If the answer is no, then insurance is a good idea.

DEAR HARRY: My mother recently passed away. In 2000, we purchased a house jointly with rights of survivorship. I refinanced the mortgage in 2006 in my name alone. Do I owe an inheritance tax on her half of the house's value? I have been given advice on both sides.

WHAT HARRY SAYS: Unfortunately, the answer is yes. The rate is 4.25 percent. Don't delay, because there are heavy penalties for late filing. Call your state representative for help.