We occasionally use this blog to answer some of the frequently asked questions that we receive, because we want to provide you with simple and straightforward information about life insurance. One question that we often receive goes something like this: “Why do I need life insurance if I don’t have children?”
Here are a few scenarios where you might want to have life insurance even if you don’t have children:
Is a spouse, partner or other loved one dependent on you financially?
If you answer “yes” to this question – either because the person isn’t currently working, an aged parent is living with you, or for another related reason – you may indeed want to have life insurance. Because the person depends on your earning capacity, the payout money from a life insurance policy can help assure that he or she is provided for if you’re no longer here.
Do your financial obligations necessitate having income from more than one person?
If your surviving spouse or partner would be able to pay off any outstanding debt – such as mortgage or credit card payments – with his or her own income, then you may not need life insurance. However, if he or she would be unable to do so, you may likely want to have the financial protection that life insurance offers.
Do you have enough saved up to cover your final expenses?
To help make this decision, calculate how much your final expenses would total. If you don’t have enough money saved to cover that amount, would your spouse or loved one perhaps struggle to pay for your final expenses without having your income? If this could be the case, you may find it wise to purchase life insurance to provide for your final expenses. This worksheet may help you to determine how much life insurance coverage you need.
Are you positive that you will never have children or adopt a child?
As soon as you have children, the important question to decide is not if you should have life insurance but how much life insurance you need. If you currently don’t have children but think you may in the future, you may want to purchase life insurance to lock in a lower premium rate, since age determines rate. For example, if you purchase life insurance at age 25, your monthly premium will be less than if you purchase the same policy at age 35.