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For many, life insurance is a one-time purchase. But your policy should keep pace with your life circumstances.

Life insurance plays a key role in financial confidence and planning, according the Lincoln Financial Group’s recent M.O.O.D of America Survey (Measuring Optimism, Outlook and Direction), which found that 77 percent of policy owners feel prepared to protect their wealth compared to 61 percent of non-owners. Additionally, the survey found that life insurance owners feel more prepared for retirement, and potential income disruption.

Young Newlyweds

You may rely on two salaries to maintain your lifestyle. Would one person be able to continue living in the same manner on just one income? Are your savings adequate for your spouse to afford rent or mortgage payments and pay off debts without you?

Premium rates are based on age and health status, so the earlier you buy, the less you’ll potentially pay. Consider locking in lower rates now.

Term life insurance is typically the most affordable option, providing coverage for a set number of years. Identify financial obligations and purchase a policy big enough to cover them. As your financial commitments increase, you can add more coverage as needed.

Growing Families

Between diapers, childcare, dance lessons, braces and education, raising a child in the United States can cost around $250,000 for a middle-income family, according to USDA estimates.

Life insurance is crucial for allowing your family to maintain the lifestyle you’ve built for them, even if the unthinkable happens.

The primary breadwinner should have a policy big enough to replace the income required to see children through to adulthood. But a non-working spouse might need coverage too. If that spouse was gone, there might be added household expenses, such as childcare.

Revisit your life insurance after the birth of every child. If coverage is lacking, consider a small policy alongside your existing one, which is generally more cost-effective than buying one larger policy.


The kids are grown, the house is paid off, and you’re embarking on retirement. Do you still need life insurance? If no one is depending on you financially, it may be safe to scale down and maintain a smaller policy and focus on long-term care insurance instead.

But, you might also have good reasons to maintain status quo. For example, how big a hardship would it be for your spouse to lose your pension and Social Security benefits? Life insurance can help offset those losses and is useful in helping inheritors pay taxes on a large estate. Or if you have a cash value policy, perhaps you have plans to leverage it as a source of supplemental retirement income.

Remember, life insurance doesn’t need to be static. It can be adjusted to fit your changing needs. For more tips, visit Additional information on the solutions available for meeting specific needs can be found at

No matter your age, plan your legacy and have a clear idea of what to leave behind for your loved ones.

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1 Comment

  1. Thank you for explaining that you can scale down on your life insurance policy if you no longer have anyone depending on you financially. My husband and I have been wondering what we should be looking for in a life insurance policy. We are empty nesters now, so it’s good to know that we can look into changing our insurance policy.

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