Do I Need Life Insurance?

If your passing would create a financial burden for your family—whether through lost income or unpaid debts—life insurance is a smart choice. Even being debt-free doesn’t necessarily mean you don’t need coverage. The key question is whether your savings can fully support your spouse and children if something happens to you. If you have enough savings to maintain their financial stability without needing additional income, life insurance may not be necessary.

However, having assets doesn’t always mean you’re financially secure. If most of your wealth is tied up in a home or other non-liquid investments, it may not provide the immediate income your family needs. The goal is to ensure your savings generate enough income so your loved ones don’t have to sell assets just to get by. If you’re debt-free but still building savings, a 10- to 15-year term policy can provide affordable protection while you work toward financial independence.

Even if you’re single, life insurance could still be important. If you have outstanding debts, your estate must cover them when you pass, and anything unpaid could become a burden for your family. No one wants to leave behind financial stress.

Want to learn more about whether term life insurance is right for you? Read on.