According to the Theory of Decreasing Responsibility, your need for life insurance peaks along with your family responsibilities.

When you’re young, you may have children to support, a new mortgage payment and many other obligations. Yet, you haven’t had the time to accumulate much money. This is the time when the death of a breadwinner or caretaker could be devastating and when you need coverage the most.

When you’re older, you usually have fewer dependents and fewer financial responsibilities. Plus, you’ve had years to accumulate wealth through savings and investments. At this point, your need for insurance has reduced dramatically, and you have your own funds to see you through your retirement years.