Life insurance is designed to financially protect your loved ones in the event of your untimely passing. But does having no debt mean you don’t need life insurance? The answer is not so straightforward.
| Scenario | Life Insurance Necessary? |
|---|---|
| Single with no dependents | May not need life insurance |
| Married with no dependents, but joint debts | Life insurance necessary to pay off joint debts |
| Married with no dependents or joint debts, financially independent spouse | May not need life insurance |
| Supporting sibling financially | Small life insurance policy may be necessary |
| Caring for aging parents | Life insurance policy may be necessary to cover costs of care |
If you have no dependents and no joint debts, you may not need life insurance. However, if you have siblings or aging parents who rely on you financially, a small life insurance policy may be necessary to protect them in your absence.
Ultimately, the decision to buy life insurance should be based on whether people in your life will struggle financially without you. If the answer is yes to any degree, then a life insurance policy is worth acquiring – even if it’s a smaller policy with only a modest benefit.
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Article Sources
- LifeInsure. I Have No Debts And No Kids. Do I Still Need Life Insurance?
- Progressive. Do I Need Life Insurance?
- Lighthouse Life Insurance Company. Do I Need Life Insurance?
- Investopedia. 3 Types Of People Who Usually Don'T Need Life Insurance
- Time Inc.. Who Doesn'T Need Life Insurance? (2023)