Life Insurance Needs Change After Age 50

Life insurance is something people tend to buy and forget, so the policy continues, unnoticed, for years or even decades, depending on its length. But your life-insurance needs may change over time, especially as you near retirement. When you turn 50, it may be a good idea to reconsider your coverage.

How do you determine if you still need life insurance in your 50s? Ask yourself why you bought life insurance in the first place, then determine if those circumstances still exist.

For example, perhaps you bought life insurance in your 20s, 30s, or 40s to protect your children should you pass away unexpectedly. If that is the case, you only need your policy until your children are grown up and out in the world, supporting themselves on their own, and no longer in need of your financial assistance. In this case, you may want to stop your life-insurance policy when your youngest child reaches age 21.

Or perhaps you bought life insurance in your 20s, 30s, or 40s to protect a spouse who stays at home with the children, earns less than you do, or simply relies on your half of the household income, should you pass away unexpectedly. And perhaps by the time you reached your 50s, circumstances had changed: you saved enough to cover your spouse’s expenses, for example, or your spouse began working.

Of course, you may also gain reasons to have life insurance as you age. Perhaps you would like it to cover end-of-life expenses, provide “bonus” income to a child or spouse, or address complex estate-planning issues, for example.

Keep in mind that these are only general guidelines. We are all different, and you might want life insurance for other reasons. Feel free to reach out to me if you need guidance on establishing the appropriate coverage for your future needs.