How long should you carry life insurance?
The length of time that you should carry life insurance depends on your individual circumstances and financial goals. Here are some factors to consider when deciding how long to carry life insurance:
- Dependents: If you have dependents who rely on your income, you may want to carry life insurance until your dependents become financially independent. This is typically around age 25. Therefore, if you are starting a family, consider a 30 year term.
- Debt: If you have significant debt, such as a mortgage or student loans, you may want to carry life insurance until your debts are paid off.
- Retirement savings: If you have sufficient retirement savings to provide for yourself and your spouse in retirement, you may not need life insurance later in life.
- Business needs: If you own a business, you may want to carry life insurance until you retire or until the business is sold or transferred.
- Estate planning: If you have significant assets that you want to leave to your heirs, you may want to carry life insurance until your estate is distributed.
It’s a good idea to carry life insurance for as long as you have financial dependents or obligations that would be difficult to cover without your income. However, as your financial situation changes, you may want to adjust your coverage or reevaluate your need for life insurance. It’s a good idea to periodically review your life insurance coverage with a financial advisor to ensure that it still meets your needs.
