When Should I Stop Buying Term Life Insurance?

Shawn Plummer

CEO, The Annuity Expert

Understanding the Right Time to Stop Term Life Insurance

Term life insurance is essential during certain stages of life, but there comes a time when it may no longer be necessary. Typically, you should consider stopping term life insurance in the following situations:

  1. After Retirement: When you retire, your financial responsibilities often decrease. If your retirement savings, investments, and Social Security benefits are sufficient to support your dependents and cover final expenses, continuing term life insurance might be unnecessary.
  2. When Major Financial Obligations are Met: If your children are financially independent and significant debts like a mortgage are paid off, the need for term life insurance reduces significantly.
  3. Relying on Other Financial Resources: If your survivors are well-provided for by other means, such as your retirement funds or investments, term life insurance might be redundant.

Situations Where Continuing Life Insurance Makes Sense

Even after 60, there are circumstances where maintaining life insurance is beneficial:

  • Outstanding Debts: If you have debts that could burden your family after your passing, life insurance can be a safeguard.
  • Dependents: If you have dependents who rely on your income, life insurance remains important.
  • Funeral Expenses: To cover funeral costs and avoid financial strain on your family.

Alternative: Final Expense Life Insurance

For older individuals, final expense life insurance can be more appropriate than term life insurance. It offers lifelong coverage and can be more affordable, depending on your age at the start of the policy.

Seeking Professional Advice

It’s crucial to consult with experts when deciding on life insurance. Organizations like the Annuity Expert, with experience in various policies and carriers, can provide tailored guidance.


Choosing when to stop term life insurance involves evaluating your financial situation, dependents’ needs, and other resources. Consulting with professionals can help in making an informed decision. Contact us today for a free quote.

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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