Whether you need life insurance depends on your financial situation, dependents, and long-term goals. Here’s a simple breakdown to help you decide:
✅ When You DO Need Life Insurance
You Have Dependents
Spouse, kids, or aging parents who rely on your income.
Life insurance replaces lost income, pays off debts, or covers future expenses (e.g., college tuition).
You Have Debt Others Would Inherit
Mortgage, car loans, or co-signed student loans.
A policy can prevent your family from being burdened.
You Want to Cover Final Expenses
Funerals/burials cost
7
,
000
–
7,000–12,000+. A small policy can spare your family this stress.
You Own a Business
Ensures business continuity or pays off business debts if you pass.
You Want to Leave a Legacy
Tax-free death benefit can fund charities, grandchildren’s education, etc.
❌ When You DON’T Need Life Insurance
You’re Single with No Dependents
If no one relies on your income, life insurance may be unnecessary.
You Have Enough Savings/Investments
If your assets can cover debts + future needs, insurance may be redundant.
You’re Retired (and Kids Are Independent)
If you’ve paid off debts and your spouse has retirement income, coverage may not be needed.
You Can’t Afford It
Term life is cheap, but if premiums strain your budget, focus on building savings first.