There is a good chance that you will still need life insurance after all your children have moved out.
After your kids move out, you might need life insurance for many different reasons. Your kids might be in college or not be financially independent yet. If this is the case, life insurance could help you out. You might already have enough money saved up to pay for college, but your kids still have to pay for food and shelter. Also, your children's social security benefits and those of your spouse will stop once the kids finish high school.
You might also have to take care of other people who depend on you. Parents, older children with disabilities, and other people who depend on you financially would get help if you died before them if you had life insurance. You might want to appeal the lower Social Security benefits for a survivor. If the dependent dies too soon, it means they didn't get any promotions or pay raises that could have made their Social Security benefits bigger. Most of the time, a life insurance policy will help ease this worry.
When you have two incomes, you have to pay for things like mortgages, leases, and car loans. Joint mortgages will be able to stay afloat if each earning spouse has life insurance. Even if you don't have any other financial obligations, it's a good idea to get life insurance because it will cover any losses.
Every family should have some money saved up for times when money is tight. This emergency fund should be between two-thirds and one-half of your total take-home pay for the year. If this reserve of money doesn't exist, the family who loses the family member will be very financially vulnerable and exposed if they don't have a good fund or life insurance plan to cover these costs and taxes after the death.
Your kids, like many young adults, probably don't have any plans for their funeral costs, medical bills after death, or costs to change their estate. State income taxes and property taxes will be a burden they won't think about for a while. So, if you have life insurance, it will cover these obscene costs, which can be very different but are usually very expensive.
If one spouse dies while receiving Social Security retirement benefits, good life insurance will help keep the income from going down. Both people in a couple get benefits, but the one who makes more gets one based on how much money he or she makes, while the one who makes less before retirement gets half or a lot less than the one who makes more. If the spouse who earned more before retirement dies, good life insurance will help the other spouse make up for the loss of income.
You can even say that some of the money you pay for your life insurance can go to your heirs or your favourite charities. Most people think this is a good idea if your assets would have been sold off without this option.
