Do You Really Need Life Insurance? It Depends

Life insurance is designed to protect those who depend on you for financial support.

Here are some tips that may help you decide if life insurance is the right choice for you.


Children do not need life insurance, since no one depends on their income.

Young single adults:

If you’re newly independent, the only reason you would need life insurance is to pay your funeral costs or support an elderly parent.

New families:

Do you really need life insurance if you’re newly married? If you are both earning incomes and one spouse could manage financially if the other dies, then you may need life insurance only to cover funeral costs. However, if you’re thinking of starting a family, you should seriously consider getting life insurance now; the rates will likely be cheaper now than when you are older.

Established families:

If you have a family that depends on your income – whether it’s a spouse, children or aging parents – you do need to provide for them. Be aware that life insurance isn’t just for the partner who works outside the home; not insuring the person who handles the household chores and child care could result in severe financial hardship for the remaining spouse.


Life insurance at this stage may not be necessary. If you don’t have anyone who depends on your income for support, and if you are able to cover your funeral expenses, you likely can avoid life insurance.

If you decide you do need life insurance, note that it costs more the older you get.

You may want to purchase life insurance when you’re younger; however this depends on your individual circumstances.

So before buying, discuss your needs with an advisor who is familiar with your situation.