Got Kids? Use These 5 Tips to Get the Right
Length of Life Insurance

If you have kids depending on your income, you might be wondering, How long should my life insurance policy last? Our go-to advice is 15–20 years, but keep these tips in mind.

Tip 1: Count the Years Until “Independence Day”

We’re not talking about our great nation’s freedom (though that’s awesome, too.) We’re talking about how many years it’ll be until your youngest is out of the house and on their own. That’s a great gauge for how long your policy should last (aka the term).

Tip 2: Take College Into Consideration

If you’ve agreed to support your kids through college, you’ll want a policy with a term that’ll last until they graduate.

Tip 3: Get a New Policy if You Need One  

Do you have term life insurance but think you might need it longer? Hey—life happens (like maybe you and your spouse had kids later than expected). Don’t stress! You can always get a new policy to cover the time you need.

Tip 4: Plan for Self-Insurance

If you’ve done the math and you think you’ll become self-insured* sooner in life than when your kids will be out on their own, you can take that into consideration too. And when you become self-insured you can do two things: 1. Drop life insurance, and 2. Celebrate like a gorilla with a million bananas.

Tip 5: Don’t Pay for Something You Don’t Need

Are your kids out on their own and supporting themselves? If so, high five! That’s the goal. It means they’re not dependent on your paycheck (or your life insurance) anymore. And unless your spouse still depends on your income,** you can put those monthly premiums toward something you do need (like a writer’s shed in the backyard).

Bonus Tip: If you have kids depending on your paycheck, don’t put this off. It’s easy to compare the best term life insurance policies for your situation with our RamseyTrusted partner. Let’s go!

*Self-Insurance: Being self-insured means you would have enough money to cover anything an insurance company would usually pay for.

**Married Couples: Even if you don’t have kids yet, you still need a life insurance policy if your spouse depends on your income to cover the bills (or the care you provide).