Should Your Life Insurance Change When Your Kids Leave Home?

Most people take out life insurance in order to protect their spouses and children in the event of their death. They want to make sure that even in their absence, the bills will get paid, debts won’t pile up, and that college will be in reach for their children.

But should you change your life insurance policy when your kids leave home? Once you no longer have children under your roof, what kind of insurance is good for “empty nesters?”

The Osceola Sentinel-Tribune does a wonderful job of examining just such a situation.

Whether or not you still need your life insurance after your kids leave home depends on your financial situation right now. Do you still have debts? Could your debts continue to grow while you pay for your child’s tuition and living expenses? Does your child plan on going to graduate school? If so, maintaining your life insurance policy is a good idea.

You would not want your passing to leave your family buried in debts, or unable to finish school.

And how about your retirement funds? If you haven’t been consistent with establishing or paying on your retirement, or your portfolio is still recovering from the economic downturn of 2009, then it’s a good idea to hang on to your life insurance. This way, your spouse will have financial support and security if something were to happen to you.

Also, will your family be responsible for estate taxes upon your death? If so, a life insurance policy is a great way to make sure that they aren’t burdened with excessive taxes upon your death.

And even if you don’t have such concerns, you can always establish a life insurance trust in order to offer your family the benefits of your policy for other reasons. Your trust could pay for your children’s weddings, for your spouse’s long term medical care, for the care of your grandchildren, and much more.

In this case, your life insurance policy would be less like a financial stop-gap, and more like a gift to family members to enjoy after your passing.

Of course, if paying for your life insurance policy has become a financial burden, and you don’t feel that your children or spouse could use the financial support in the event of your passing, then you can certainly downgrade to a smaller policy if you’d like.

There are many options available for empty nesters today. Talk to a knowledgeable life insurance broker to find out what type of policy best suits your needs and the needs of your loved ones.

Affordable Life Insurance Rates
Are Waiting For You!
Choose Your State

Related Information

I Have No Dependents. Should I Get Life Insurance?

Just because you don't have dependents doesn't mean you don't need life insurance. Find out why purchasing such a policy is still a good idea.

Read More

Life Insurance Recommendations

Shopping for life insurance? Here are our recommendations for choosing a policy that's right for you.

Read More

A Guide to Spouse Life Insurance

Spouse life insurance is simply the act of taking out a life insurance policy on behalf of your spouse. Learn about your options.

Read More

Does Life Insurance Cover Funeral Expenses?

Yes, life insurance can help cover funeral expenses. Here's what else you should know before you purchase a policy.

Read More

Deciding If Life Insurance Is Worth it

70% of those living in the U.S. consider life insurance vital. If a spouse, child, or anyone has ever relied on you, then life insurance is worth it.

Read More

Who Needs Life Insurance?

Do you need life insurance? If you’re considering buying a policy, you should first read this primer on life insurance policies.

Read More

How Much Life Insurance Coverage Should I Purchase?

Life insurance coverage amounts can range from the thousands of dollars into the millions. Learn how to pick the right coverage amount for you.

Read More

Do You Need Life Insurance to Buy a House?

You don't have to have life insurance with your mortgage, but life insurance can help your loved ones make house payments after you die.

Read More

Why Do I Need Life Insurance?

If you are starting a family, or own a home or business, a life insurance policy can help ensure your loved ones are protected if you die unexpectedly.

Read More