Many people ask this very question as their last child makes that final leap from the nest. The house is emptier and there are fewer burdens in regards to providing for others, so what is the sense in having a life insurance policy, right? It can be easy to think this way because you feel comfortable knowing that the children don’t need your income any longer, but what about your spouse. There is much to consider before a policy is cancelled or the decision is made not to renew.

Remember, life insurance is meant as protection for anyone you leave behind. It can be used to replace several years’ income – based on the value of the policy – and can even help to cover the cost of funeral services. So, before deciding what is best for you and your family, ask yourself these questions.

Do you rely on two incomes? This is the most important thing to consider before either spouse cancels a policy. Just because the kids have moved out, doesn’t mean that you will instantly feel a freedom from financial burden. In many instances, especially today, couples rely heavily on both incomes, so if one were to pass away it would result in a huge loss to the household. You don’t want to place that kind of added stress on your partner. So, if you truly do rely on both incomes for maintaining a comfortable life and for paying all existing bills, then it is a good idea to hold on tight to the life insurance policy.

When will you be able to retire? Life insurance can protect IRA and 401(k) savings when one spouse passes away before reaching retirement. With more and more people finding that they must continuing working past usual retirement age, this is a very important thing to consider. Is your spouse going to need your savings in order to retire? How far into the future will that be? Will a life insurance policy be needed to bridge the gap between today and that date?

Would you be okay financially if you were to become disabled? Many life insurance policies come with a built in disability insurance, which is meant to protect you from lost wages as a result of falling ill or being seriously injured. This can also be used to help cover the cost of related medical expenses, which can pile up quickly, especially if losing your job results in losing health insurance coverage. So, be sure that you are honest with yourself. If suddenly you were hurt or became chronically ill, would you be able to continue to afford to live comfortably without your job? Would you be able to cover the health care expenses without further assistance? If the answer to either question is no, then it might be wise to look into your life insurance coverage and be sure that the policy selected helps in those unfortunate times.

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