Sue,
Mine was 13 years old when I replaced it. While it still worked and wasn't rusted, I rationalized that the next one would probably exceed my boat ownership. As such, it was very easy to change it when I did as the engine, generator, and saloon floor were out of the boat.
Another motivating factor is the heat exchanger in the water heater. I have 2 friends who each have had the heat exchanger fail. When it happens, if the engine cooling system is directly coupled to the water heater, your domestic water system (30+ PSI) pushes water back through your engine coolant system. If you're lucky, the expansion (radiator) cap vents your engine coolant into the overflow bottle and then into the bilge. If you're unlikely, well the engine coolant system is designed for around 10 PSI. All sorts of bad things could happen.
Ted