Should I be covered until I’m 70? 80? What about 90?
This is a common question I get asked, and to be truthful, there is not a single answer that is right for everyone. In general, especially for “men” (because of life expectancy) I like to TARGET having and paying insurance to extend to age 85! This is of course an overly broad generalization, and that determination should be done on a person by person, case by case, situation by situation.
Whether life insurance makes sense or not for people reaching older ages depends on how responsible you are for other people, and what would happen to those people if you weren’t there. “Forget about all the emotional trappings that go with life insurance,” says Tony Steuer, director of financial preparedness at the insurance consumer group United Policyholders. “Just look at the heart of the matter and decide if someone is financially dependent on you for income.”
Thinking about who is dependent on your income is a good rule of thumb, but having Life coverage can have other uses outside of just income replacement.
Life Insurance can also be an estate planning tool. Let’s say you have a farm or a business that you want to keep in the family, you could have a life insurance policy that is tied to your estate plan, including having your policy paying off your estate taxes.
There are many reasons to continue Life Insurance coverage, and one reason to stop – lowering your monthly expenses by ending your premium payments! Working with you through these decisions, helping you with your coverage is my job. Whether you need my help or not, I’d urge you to carefully think about when your policy should end, or what types of coverage you should have at each stage of life.
Written by Mike Butz, a St. Louis based Independent Life Insurance Broker & Founder of MB Health
Licensed for Life Insurance in Missouri & Illinois