7 Reasons You (Think You) Don’t Need Life Insurance

young single women have a night out with food and drinks

Premature death can leave a lasting impact whether you’re married, single, young or don’t have time to shop for a policy. Before you decide you don’t need coverage, take a moment to reconsider the reasons you don’t need life insurance. 

Table of Contents

1. You’re Single

You might think being single is one reason you don’t need life insurance, but that isn’t set in stone. If you don’t have a spouse, children or parents that depend on your income, life insurance can still help if you pass away prematurely.

For example, suppose your mom cosigned when you took out private student loans. Or maybe you have a car loan in both your and your dad’s name. Your parents could be on the hook to pay them after you’re gone.

A life insurance policy can help cover the loan balances when you’re single, so your loved ones aren’t struggling to make ends meet.

2. You’re Young and Healthy

You’re young and healthy, and you’ll live forever, right? Not so fast. If you have health conditions that run in your family, you may want to get a life insurance policy sooner rather than later. If you wait to buy it, you might be denied coverage (or your coverage could be substantially more expensive).

Jake's Take

"If you do the math you will see that most people who buy life insurance before they really need it would have been better off instead putting that money aside for an emergency fund and waiting until they had a clear need before buying."

Getting a small term policy early in life can be the first step to laddering life insurance coverages. Then, if you get married, have children, or have others who depend on your income, you can add on another term policy to increase your coverage.

3. You’re Financially Secure

You might dream of building wealth to be self-insured if something goes wrong. While financial security is something to be grateful for, it isn’t guaranteed.

For example, you might have lasting injuries from a car accident or illness. When the medical bills add up, your savings and retirement accounts can dwindle — even if you have health insurance coverage.

Some life insurance is worth the cost because it offers riders for disability and critical or terminal illnesses that you can access while you’re still living. 

When the inevitable happens, and you pass away, life insurance death benefits can wipe out lingering bills and contribute extra household funds to help your family get back on their feet. 

4. Your Family Has Longevity

Your mom, grandmother and great-grandmother all lived into their 90s. But even if your family members reach a ripe old age, nothing guarantees you will. 

According to the Centers for Disease Control and Prevention, the number one cause of death for people under age 44 is accidents. But unexpected environmental conditions like pollution or pandemics can shorten people’s lifespans regardless of their family’s longevity. 

It’s impossible to be immune to everything. Buying life insurance online is simple, and it can guarantee your family has money if the worst should happen.

5. Your Kids Are Grown

If your children are out of the house, you may think you’ve outgrown your need for life insurance. However, plenty of parents with adult children benefit from buying life insurance.

For example, suppose your kids are grown, but you or your spouse are working to build up your retirement fund. A life insurance payout can go toward your surviving spouse’s retirement years if you die before then. 

It could also pay the outstanding mortgage or rent for the next few years, so your partner has housing security.

6. You’re Retired

When people retire, they don’t usually need life insurance to provide an income for the family they leave behind. However, even retired people can benefit from a life insurance policy.

According to the U.S. Census Bureau’s Survey of Income and Program Participation, half of the adults between 55 and 66 didn’t have anything saved for retirement. Even if your retirement savings are enough to cover your monthly needs, final expenses can significantly burden your loved ones’ finances. 

An end-of-life policy can earmark funds to pay for a funeral and final medical bills. That way, your loved ones can focus on grieving instead of worrying about money.

7. You Don’t Know What to Look For

No one likes to think about their demise. It’s easier to bury your head in the sand and pretend it won’t happen to you, especially if you don’t know what to look for in a life insurance policy.

But if you think you can skate through life without it, you’re likely overlooking important vulnerabilities. Life insurance can bridge the gap and protect against unexpected catastrophes. 

It’s okay if you’re not sure how much coverage you need or what type of policy you should buy. We’ve got you covered — we’ll even tell you if we think you don’t need to purchase life insurance!

The first step is to visit The Ultimate Life Insurance Calculator. You’ll enter a few key pieces of information, and you’ll get a customized plan that’s unique to your individual situation. We won’t even ask for your email or phone number. Try it and get a quote today!

Disclaimer: The comments, opinions, and analyses expressed at Everyday Life are for informational purposes only and should not be considered individual investment, legal or tax advice.

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