The Theory of Decreasing Responsibility discusses a typical financial life cycle of most families. Your need for life insurance is at its peak when your family responsibilities are at their peak. When you�re young your financial obligations are greatest and, accumulating cash is a challenge. If anything happens to the breadwinner the effect would be devastating! Your insurance need is significant. When you�re older your financial obligations have decreased, and responsibilities are fewer, your income needs may not be as great. You also have had time to accumulate a significant �nest egg�. You have financial security in your retirement years. Your need for insurance has reduced dramatically.