Dave Says...How Late is Too Late?

Dear Dave,

How late is too late to get life insurance?

Anonymous

Dear Anonymous,

It’s pretty easy to get term life insurance – the only kind of life insurance I recommend – up until around age 70. Depending on your overall health situation, there are a few affordable policies available past that point. But once you get into your seventies and beyond it can be difficult to find reasonably priced coverage.

I recommend that most people have 10 to 12 times their annual income wrapped up in a good, level term life insurance policy. But honestly, you shouldn’t need life insurance at 70 or older. If you’ve been wise with your money, and saved and invested, you should be self-insured by that point. This means having plenty of cash in the bank to cover burial expenses and enough for a spouse to live on after you’re gone.

—Dave