Who doesn’t need life insurance?
In general, if you’re single and don’t have any children, you probably don’t need life insurance. Why? Because no one is relying on your income to live.
That seems simple enough, but here’s what you may be thinking: “I’m planning to have a family one day. What if my health deteriorates before then? Should I buy life insurance now before it gets too expensive or I get sick and become uninsurable?”
In this case, do you need life insurance? Buying coverage before you actually need it may seem like the best way to plan for the future (and to stop your mind from running through worst case scenarios at 3:00 a.m.). But the reality is that if you don’t need the coverage today, the money you would spend on insurance premiums could be better used to contribute to retirement savings or build an emergency fund. If you’re someone who avoids risk at all costs, you may disagree with us. However, for most people, our advice is this: save your money for now, and come back to us in a few years when you’re married or have children. In other words, there’s no need to put the cart before the horse.
Additionally, anyone who is no longer making an income (usually those in retirement) or anyone with enough savings to cover their future family expenses doesn’t need life insurance. Remember, life insurance is used to protect those who are financially dependent on you. If you are able to do that already with your savings, then life insurance is not needed.