The Theory of Decreasing Responsibility

Think about this:

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.

If you've saved and invested wisely you should have a significant amount of accumulated cash. You've become "self-insured" and have reduced your need for life insurance.

Want to learn More about How Money Works™ Concepts? Check these out.

The High Cost of Waiting

The High
Cost of

Pay Yourself First


The Rule of 72

of 72

The Power of Compound Interest

The Power
of Compound