You may or may not realize that your life insurance needs change over the years. The need for life insurance usually peaks with your financial responsibilities.
In your younger years, you may have many financial responsibilities. This could be a mortgage payment, supporting your children and family, and possibly other debts like a credit card or a loan. At the same time, you may not have saved much money or accumulated wealth.
If the “breadwinner” were to die during this time, it could be a financial disaster for your family. This is when life insurance coverage is critical, and needed the most.
In your older years, it’s likely your financial responsibilities have decreased. You may have paid off your mortgage (or it’s reduced); your children are grown and so have your savings.
Your life insurance needs will reduce significantly and you can fund your retirement through your accumulated wealth. You may still choose to have life insurance coverage to ensure your loved ones are protected too.
Essential information
It’s important you understand how cents+change works and the constraints of this site. This is a journalistic website that aims to provide a guide on different aspects of finances. We can’t promise to be 100% accurate, so note that you use the information on this site at your risk. We can’t accept liability if things go wrong.
Information found on this site does not constitute financial advice. You must do your own research to determine if it’s right for your specific circumstances.
We do not and cannot recommend specific financial products. We may provide examples of products or companies, but always do your own research. Speak with a financial advisor to understand whether a product is right for you.
Note that providers often change the price and terms related to their products. So whilst we aim to provide accurate information, check or speak with a provider to get the latest deals.
We provide links to other websites, but we cannot be responsible for their content.