- You need life insurance if you have dependents or people who’ll inherit your debts.
- Life insurance can be worthwhile even if you don’t have dependents.
- Consider your situation, needs, and budget before purchasing life insurance.
signed a mortgage with someone else, your death could make those payments unaffordable for the other person. This could mean losing the home if your partner defaults on payments.
If your loved one defaults on other shared payments, they could face repercussions like damage to their credit score and repossession of their assets. Life insurance gives you the peace of mind that your beneficiaries won't have to deal with those outcomes.
You want to leave a financial legacy
You may still want life insurance even if you don't have dependents. Instead, you can designate a charity or nonprofit organization as the beneficiary of your policy. Additionally, you can use your life insurance to leave an inheritance, say for your adult children or spouse.
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When life insurance is beneficial
If you don't have dependents, life insurance could still be beneficial. Covering end-of-life, retirement and long-term care, and estate planning expenses are a few reasons to get life insurance.
Final expenses
Life insurance can pay for your end-of-life expenses so your loved ones can grieve your death properly. Examples of final expenses include but aren't limited to your:
- Funeral service
- Casket or urn
- Burial plot
- Cremation
- Transportation
- Outstanding medical bills
Retirement and long-term care expenses
Permanent life insurance life insurance isn't taxable.
When life insurance isn't needed
Life insurance is an important tool for many people, especially those with dependents. However, there are certain instances where insurance may not be necessary or economical.
You have no dependents and minimal debt
Life insurance primarily protects those who rely on you financially. So, if you don't have dependents or debt cosigners, you may not need life insurance.
Even if you have no dependents and minimal financial obligations, having a policy could still be a good idea. Waiting too long comes with an opportunity cost. Insurers will raise premiums as you age and start to develop health issues.
Buying life insurance while young and healthy allows you to lock in low rates and insurability. This is especially helpful if you anticipate caring for dependents in the future.
You have significant savings
High-net-worth individuals with minimal debts and significant savings may find that they don't need to pay extra premiums for insurance. This is especially true if you're confident that your dependents are financially secure without your income.
You're approaching retirement age
If you're approaching retirement age and you don't have financial dependents or obligations, life insurance may not be necessary. Even if you have dependents, weigh the cost against the benefit of getting life insurance now before buying a policy.
If you are a senior with health problems, you may see higher premiums on your policy and smaller coverage amounts. Consider looking at alternatives to address your dependent's financial needs, such as saving and investment vehicles or group life insurance.
Compare life insurance options
Not Rated
A
- 100% online application process, quotes in minutes
- Coverage starts immediately once approved
- Term policies renewable up to age 94 for qualifying applicants
- No conversion options to turn term policies to whole life for no exam policies
- Whole life policy limits are lower
762
A
$19 for males and $16 for females per month
N/A
Up to $2 million
- Guaranteed life insurance available for seniors between 50 and 80
- High financial strength and customer service ratings
- Some policies only have benefits up to $25,000
- AIG may not offer more extensive death benefits for seniors
N/A
A+ (Superior)
- Offers level term and whole life policy
- Discount and bundling opportunities
- Available in all 50 states
- Limited add-on coverage options
- No universal policies
- Online complains indicating life insurance service does not match other Amica products
- Term life and whole life
FAQs
Do I need life insurance if I'm young and single?
If you're young and single, you may need life insurance if you have dependents. If not, life insurance may still be beneficial. Purchasing life insurance while young and healthy helps you lock in competitive rates and your insurability.
Can I get life insurance if I have health problems?
Getting life insurance is possible, even if you have health problems. However, this depends on your overall risk profile. An alternative to traditional life insurance is no-medical exam insurance. By opting out of the medical exam requirements, you improve your chances of insurability. However, these policies usually have higher rates and lower coverage limits.
Do I need life insurance if my spouse has coverage?
If your spouse has coverage, you'll likely need to buy life insurance if you have dependents. Unless you have joint insurance, each policy only covers one person. So, if you die, your spouse's insurance won't cover you.
How much life insurance coverage do I need?
The amount of coverage you need depends on your family's financial needs. Use an online life insurance calculator to estimate your coverage needs based on current and future expenses. In addition, you can consult an independent agent or a financial advisor for more personalized advice.
Is life insurance expensive?
Whether life insurance is expensive depends on various factors, such as age, health, gender, occupation, and lifestyle. The type of coverage also determines the price of your policy. term life insurance policy because it offers lifelong coverage and a cash value component.
