Passwords can be compromised and must be protected. In the ideal case, a password should only be used once. The changing of passwords can also fall between these two extremes.
Passwords can be required to change monthly, quarterly, or at other intervals, depending on the criticality of the information needing protection and the password's frequency of use.
Obviously, the more times a password is used, the more chance there is of it being compromised.
It is recommended to use a passphrase instead of a password. A passphrase is more resistant to attacks. The passphrase is converted into a virtual password by the system. Often time the passphrase will exceed the maximum length supported by the system and it must be trucated into a Virtual Password.
Reference(s) used for this question:
http://www.itl.nist.gov/fipspubs/fip112.htm
and
KRUTZ, Ronald L. & VINES, Russel D., The CISSP Prep Guide: Mastering the Ten Domains of Computer Security, 2001, John Wiley & Sons, Page 36 & 37.
