How much life insurance should you have? That depends on many factors, including your age. To get the most out of your policy, it’s important to periodically re-examine your insurance needs at different stages in your life. The policy you purchased when your kids were born may not be the right one during retirement. We take a decade-by-decade look at different life stages and examine how they can shape your need for coverage. 

Life Insurance in Your 20s

When evaluating life insurance needs at different stages in your life, you should really start in your 20s. One of the biggest misconceptions about life insurance is that you don’t need it when you’re young. But that’s far from true. You may want a life insurance policy if you’re married, have started a family, support family members or have private debt (from student loans, cars, mortgages, etc.).

A life insurance policy can help shield your co-signers or joint account holders against your debts should the worst happen. Life insurance is generally pretty inexpensive for young adults. Buying life insurance when you’re young and healthy can also ensure that you benefit from a lower premium. 

Life Insurance in Your 30s

Now that you’re in your 30s, you may have experienced one or more significant life changes. Whether you’ve gotten married, started a family, landed a new job or bought your first house, you’ll want to be sure your life insurance is keeping up.

If you’ve started a new position or a new career, life insurance may not seem like something that should be at the top of your list. But reconsidering your life insurance when your income changes is one of the smartest insurance moves you can make.

If you’ve had kids, congratulations! You probably know that your life insurance need at this stage of your life increases with children. Ensuring that your family is taken care of is likely very important to you — and to them. Life insurance can cover funeral costs and, more importantly, provide income after you’re gone.

Life Insurance in Your 40s

As your career has advanced, your income has likely increased. When your income grows, revisit your life insurance coverage to make sure the protection it provides is keeping pace with your lifestyle.

That said, not all life changes call for increasing your life insurance. If you’ve paid off debts — car loan, mortgage, private loans — or your children have moved out, your life insurance coverage can likely be adjusted. You may also be able to afford a permanent life insurance policy now. Certain types of life insurance build cash value, which in time can be used as a form of supplemental retirement income.

Life Insurance After 50

As you get closer to retirement, your life insurance needs will change. Now’s a good time to consider a daily living rider. With one in place, you can receive a portion of your policy’s death benefit if you become chronically ill or are unable to perform two of five essential tasks of daily living — eating, toileting, transferring, bathing, dressing and/or continence.¹

On the other hand, if you’re debt-free, no longer working and your children are financially independent, you may be able to reduce your life insurance coverage.

What Life Insurance Policy Do You Need Now?

Your insurance needs will change at different stages in your life. Our life insurance calculator can help you decide how much coverage you need. We offer three types of life insurance: term lifewhole life and universal life. Check with your Farm Bureau agent to see which is right for you.

¹Life insurance and its riders can provide some financial protection in your later years, but should not be viewed as a replacement for long-term care or disability income insurance.