How Long Do I Need Life Insurance?
If your insurance is meant to provide for surviving family members when a breadwinner passes prematurely — you want to have adequate coverage at least until all children become financially independent, typically after they leave home, graduate from college and land a permanent job.
Once your kids have flown from the nest, generally it’s just you and your spouse remaining. If your spouse is working or otherwise can support themselves after your demise, you probably don’t need life insurance. Moreover, by then you may have accumulated enough assets to be self-insured.
However, the opposite may be true. There are many reasons why you or your spouse may be financially vulnerable. Maybe you lost money in a failed business, or raided your 401(k) to send your children to college and graduate school. It’s also not uncommon for some to lack marketable skills, having stayed out of the labor force for years to raise children. Or you may suffer from a health problem that, while not life-threatening, prevents you from being gainfully employed. In these situations, you may want coverage beyond the milestone of your children attaining independent adulthood.
Once your kids have flown from the nest, generally it’s just you and your spouse remaining. If your spouse is working or otherwise can support themselves after your demise, you probably don’t need life insurance. Moreover, by then you may have accumulated enough assets to be self-insured.
However, the opposite may be true. There are many reasons why you or your spouse may be financially vulnerable. Maybe you lost money in a failed business, or raided your 401(k) to send your children to college and graduate school. It’s also not uncommon for some to lack marketable skills, having stayed out of the labor force for years to raise children. Or you may suffer from a health problem that, while not life-threatening, prevents you from being gainfully employed. In these situations, you may want coverage beyond the milestone of your children attaining independent adulthood.