Why?
First of all, life spans are increasing. According to a 2012 survey by the National Center for Health Statistics, average life expectancy for men and women in the United States has increased by more than five years since 1980. This means more people have two to three decades of a working career left when they hit their 40s.
Also, most people's finances get more complicated as they enter middle age. By that time, many people have families that depend on them and a significant number of assets that may need protection in the future. So putting financial plans into action in your 40s or even your 50s is not too late, given the increase in average longevity.
Beyond age and finances are individual circumstances. Let's say, on one hand, you earn more and you have kids. You pay a mortgage and you save for college through a 529 plan. Then you may want to explore the idea of a life insurance policy large enough to cover the potential expenses if you pass away. On the other hand, if your mortgage is nearly paid off and your children all have full-ride scholarships to college, your need for life insurance may be less critical.
Or, perhaps you're single with no children. If you're financially stable and relatively debt free, you have less of a need for life insurance. On the other hand, you may want to look into an appropriate life insurance policy to cover your debts and funeral expenses if you are financially unstable and have sizable debt.
That can get complicated as well. Basic varieties of coverage options range from whole life insurance, term life insurance, and universal life insurance . The task of determining if a life insurance policy is right for you can be challenging. Some people opt to consult a financial professional.
In all scenarios, your decision about life insurance should reflect your current financial situation. To get a better idea of how life insurance fits into your finances, please feel free to contact us here.