25 Apr Do I still need life insurance now that my kids are grown?

Q. My life insurance is a term policy for $250,000 that will end next year. My kids are grown and I do help them financially sometimes. My mortgage is paid off. Is it worth keeping the policy at this point?
— Unsure

A. Yours is an excellent question.

There are several ways to consider life insurance as part of your financial plan.

Michael Gibney, a certified financial planner with Modera Wealth Management in Westwood, said his approach to life insurance is based on need.

He said similar to other planning questions, the answer to your question can be addressed by an analysis of your current assets and liabilities as well as any other insurance you may have through an employer or association.

“You’ve addressed one aspect of a potential need and this is paying off any and all debts, such as a mortgage,” he said. “However, other questions should arise as well.”

For example, ask yourself: Are there people who depend on you for your income if you are still working?

“If so, this may require you to maintain some life insurance. Some also do not want their heirs to be burdened with `final expenses,’ which may require a relatively small policy to address funeral expenses and the like,” he said.

If you determine you have a need for insurance, then you’ll have to apply.

“This is where health, age, and cost may become a factor,” Gibney said. “Keep in mind, many websites can provide you an estimate of what a new policy may cost, but ultimately, this will be determined by the underwriting process.”

Email your questions to .

This story was originally published on April 25, 2023.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.