When is it too late to buy life insurance?

Published: April 23, 2020

Dave Ramsey

Dear Dave,
Life insurance is one of those things I always said I would get around to buying someday, but for various reasons I just haven’t done it yet. Is there ever a time when it is too late to get life insurance?
Angie

Dear Angie,
First of all, I only recommend level term life insurance. It’s fairly easy to get until around age 70, depending on your overall health situation. Once you get into your seventies and beyond, however, it can be more difficult to find reasonably priced coverage.

I recommend that most people have 10 to 12 times their annual income in term life insurance. To be honest, though, you really shouldn’t need life insurance if you’re 70 or older. At that point, if you’ve saved and invested wisely over the years, you can be self-insured. By this, I mean you’ve got enough money in savings and investments to cover funeral expenses — plus enough for a spouse to live on comfortably after you’re gone.

Don’t wait any longer, Angie. Take care of this today!
— Dave

Dave Ramsey has written seven best-selling books, including “The Total Money Makeover.” The Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms.