This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

In Your 50s? Don't Risk Life Insurance Lack

HUNT VALLEY, Md. ( TheStreet) -- How do you know if you need life insurance in your 50s? And if so, how much?

For starters, is anyone reliant on you for their financial well-being? A spouse? Minor children? Life insurance does not pin a numerical value on your life; it helps compensate for the financial loss accompanying your death. Therefore, if no one is reliant on you for their financial well-being, you don't need life insurance. End of story? Not exactly.

We avoid certain risks altogether (skysurfing without a parachute, say) while reducing others, but until you can handle the costs of death on your own, lacking life insurance shouldn't be among those risks.

Many years ago, I was trained by one of the best life insurance companies on the planet. I was instructed first to definitively answer a potential client's question, "Do I need life insurance?" with the simple answer, "Yes!" This, however, is patently false and driven by the blatant economic bias on the part of insurance companies who profit only if we pay.

Every day, we manage a variety of risks, but only occasionally do we transfer that risk to an insurance company. We avoid certain risks altogether (skysurfing without a parachute, say) while reducing other risks to a manageable level (for instance, wearing sunscreen). If you have reached a level of financial independence -- meaning your passive income from investments and other income sources is enough to care for you and anyone left behind -- you and your loved ones can assume the risk associated with your untimely passing.

Folks in their 20s and early 30s tend to have rapidly increasing responsibilities associated with homeownership, marriage and young children without having built an asset base to care for anyone they may leave behind. Those in their late 30s and 40s see their income increasing, but as they start to make meaningful progress building a nest egg for the future, their ability to save is hampered by spiking costs at home as older children with educational inclinations gobble up discretionary income. These demographics typically have the greatest life insurance needs.

So as adult children decouple, 50-somethings eye empty-nesthood, a drastic reduction in household expenses and peaking household income. This gives them -- maybe you -- a chance to take stock of what you've been able to accumulate as retirement savings and set a course for financial independence.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs