Do I Need Life Insurance if I Have No Dependents?

Life insurance can help to provide financial protection for your loved ones, should something happen to you. If someone depends upon your income, life insurance could make the difference between greater financial stability and financial struggle.

We often think of “dependents” as children, but they’re not the only ones who may rely on you financially, so it’s possible that you could still need life insurance.

To determine whether or not you need it, ask yourself these four questions.

1. Is a spouse, partner or other loved one dependent on you financially?

If you answered “yes” because your spouse isn’t currently working, an aged parent lives with you, or for a similar reason, you may indeed need life insurance. That person depends upon your earning capacity and so the payout money from a life insurance policy could help to ensure that he or she could be better provided for financially if you were no longer here.

2. 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

3. Do you have enough saved up to cover your final expenses?

The average cost of a funeral can run as high as $10,000¹ – and that doesn’t include any unpaid debt, medical bills, or other kinds of expenses. If you qualify for Social Security, it will currently only cover $225 toward final expenses. If you don’t have enough money saved, would your spouse or loved one struggle to pay for your final expenses without your income? If so, you may find it wise to purchase life insurance to pay or help defray the cost for your final expenses

4. Do you plan to have children in the future?

As soon as you have children, the question becomes not if you should have life insurance, but how much life insurance do you need. If you currently don’t have any children, but think you may in the future, you may want to purchase life insurance now to lock in a lower premium rate, since the age when you buy determines the premium rates. For example, if a healthy male or female purchases life insurance at age 25, the monthly premium will be less than for purchasing the same policy at age 35.

Need help assessing your life insurance needs? Give us a call at 1-800-704-2180, Monday through Friday 8 a.m. to 7 p.m. ET.

¹ National Funeral Directors Association, NFDA 2015 General Price List Survey.