Do I Need Life Insurance?
The honest answer: it depends on your situation. If anyone would face financial hardship because of your death, you probably do. This guide helps you figure it out without a single sales call.
52%
of Americans don't buy life insurance because they think it costs too much — yet most overestimate the price by 3x or more. The real cost might surprise you.
You might need life insurance if…
Check any that apply. The more boxes you tick, the stronger the case for coverage.
You have a spouse or partner who depends on your income
If your partner would struggle to cover rent, mortgage, or daily expenses without your paycheck, coverage replaces that income.
You have children under 18
The cost of raising a child through age 18 averages over $300,000. Life insurance ensures they stay on track even if you can't be there.
You have a mortgage or significant debt
Debts don't disappear when you do. Coverage prevents your family from inheriting financial burdens alongside grief.
You co-signed a student loan or business loan
Co-signed private loans can become immediately due if the borrower passes away. A policy protects the co-signer from that liability.
You own a business with partners or employees
A key-person policy or buy-sell agreement funded by life insurance keeps the business running and protects everyone involved.
You're a stay-at-home parent
Childcare, cooking, cleaning, and household management cost $40,000+ per year to replace. Your contribution has real financial value.
You want to leave money for funeral and end-of-life costs
The average funeral costs between $7,000 and $12,000. Even a small policy can keep your family from paying out of pocket during the worst week of their lives.
Five myths that keep people uninsured
Misinformation is one of the biggest reasons people go without coverage. Here are the facts.
✗“Life insurance is too expensive”
✓52% of Americans overestimate the cost by 3x or more. A healthy 30-year-old can get $500,000 in term coverage for about $25 per month — less than most streaming subscriptions combined.
✗“I'm young and healthy, so I don't need it yet”
✓That's actually the best time to buy. You lock in the lowest rates possible, and coverage gets dramatically more expensive (or harder to qualify for) with every passing year.
✗“I get coverage through work, so I'm set”
✓Employer coverage is typically 1-2x your salary — far less than most families need. Plus, you lose it if you leave your job, right when you might need it most.
✗“Stay-at-home parents don't need coverage”
✓Replacing the services a stay-at-home parent provides (childcare, meals, cleaning, scheduling) would cost a family $40,000 or more per year.
✗“Single people don't need life insurance”
✓If anyone co-signed your debt, they could be responsible for it. And if you plan to have dependents someday, buying now locks in rates before health changes.
What it actually costs
Term life insurance — the type most families need — is surprisingly affordable. Here is a rough idea for a $500,000, 20-year term policy for a healthy non-smoker:
Age 25
$20
/month
Age 30
$25
/month
Age 35
$30
/month
Age 40
$42
/month
Age 45
$65
/month
Age 50
$95
/month
These are approximate averages. Your rate depends on health, lifestyle, and the specific policy. But the point stands: it is far cheaper than most people think.
When you might not need it
Life insurance isn't for everyone. You may not need coverage if:
- —You have no dependents and no co-signed debts
- —Your spouse earns enough to cover all household expenses independently
- —You have enough savings and investments to cover your family's needs for years
- —Your children are financially independent adults
Even in these cases, some people choose a small policy to cover funeral costs or leave a charitable gift. There is no wrong answer — only what makes sense for you.
Still not sure? Let's figure it out together.
Our private, guided process walks you through a few simple questions about your life and gives you a clear, personalized answer — no phone calls, no pressure.
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