Who doesn't need life insurance?
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Who doesn't need life insurance?

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Who doesn't need life insurance?

Remember, we only recommend life insurance for people who have loved ones who depend on them financially. Who wouldn’t need it? 

  • Anyone who is single with no dependents. In this case, dependents are loved ones who would be impacted financially if you passed. 
  • Anyone who has managed to build up enough savings to provide the safety net on their own (think older parents whose kids are out of the house & who are pretty close to retirement).
  • Children - Many people consider buying life insurance for their kids, but this isn’t necessary! Chances are, your children aren’t contributing finances to the home right now, and therefore a policy isn’t necessary. Learn more about if you should buy life insurance for your kids.

But what if I’m planning to have a family?

It’s easy for us to say that if you’re currently single and don’t have kids, you don’t need life insurance right now.

But what if you’re planning to get married or have kids one day in the hopefully not-so-distant future? What if you develop an illness before then that makes it harder or more expensive to get coverage? Should you buy a policy now just in case?

We would say “no." Why?

Because if you don’t need coverage today, why pad your insurer’s pockets with insurance premiums that aren’t protecting anyone (other than that hypothetical spouse or child of yours)? You’d be better off putting your money toward an emergency fund or retirement savings.

Of course, if it’s more important to you to avoid the risk that your health could decline before you buy insurance, getting coverage now might still be the right choice for you. But for everyone else, we suggest saving your money and revisiting life insurance when you get married or have a baby.

What happens to my loved ones if I don't have insurance?

You might be wondering if you can get away without insurance, what’s the worst that could happen? That answer is different for everyone, because it depends entirely on what you’re protecting . The best way to understand this is to play out the scenario with the following questions: 

  • What are the current expenses that your income covers? 
  • Who depends on these expenses being paid? 
  • How much do you have saved or available in liquid investments? 
  • If you died, how many months could your loved ones survive without your income? 
  • Is your family capable of adjusting their spending enough to survive without your income?

If any of these questions left you uncertain, then life insurance is definitely worth considering. 

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