The Ins and Outs of Who Needs Life Insurance

Life insurance is designed to protect the people who depend on you for financial support, but how much life insurance you need (and what kind) depends on the people you are supporting. Ask yourself the questions below to determine if life insurance is right for you, depending on your circumstances.

Does your child need life insurance?  No. Broadly speaking, because no one depends on income from a child, a child does not need life insurance.

Do you need life insurance as a young single adult?  No. The exception would be if you help support someone, such as an elderly parent. But you may want to consider life insurance when you begin thinking about starting a family. It is likely less expensive then than it will be when you get older.

Do you need life insurance if you have family?  Yes. If you have a family that depends on you, you almost certainly need some amount of life insurance. If each spouse earns an income that could support them without the other spouse’s income, life insurance may not be necessary. But if you rely on both incomes, you should get life insurance. Be sure to get enough, though. If one person is a stay-at-home spouse, his or her contribution needs to be covered as well, because it can be costly to replace someone to take care of children and help around the home.

Do you need life insurance if you are older?  Maybe. If you do not have people depending on your income for support and you can cover funeral expenses, life insurance at this stage in life may not be necessary.

If you decide you need life insurance, purchasing it costs more as your age increases. Before doing so, then, you should talk to us. Call or email us for more information.