If You Answer Yes to These 2 Questions, You Need Life Insurance

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Here’s a quick way to know if you should get coverage.

Key points

• You may not be set on getting life insurance.
• A few simple questions could help you decide if coverage makes sense.
• Just because you don’t have children doesn’t mean you don’t need coverage.

Anytime you take on a new expense, you’re left with less money for another expense. That’s just one reason why you may be hesitant to apply for life insurance.

Although life insurance is an important thing to have, there’s a cost involved. Now, that cost can vary depending on the type of insurance you choose to buy and the amount of coverage you have. A life insurance policy with a $2 million death benefit is apt to cost more than a policy with a $600,000 benefit, all other things being equal.

What’s more, there are steps you can take to make life insurance more affordable. Those include working on improving your health and opting for term life insurance instead of paying up for a whole life policy.

Either way, if you’re on the fence about life insurance, there’s an easy way to figure out if buying a policy is worth it. Just run through these two questions, and if either is a yes, it means you should apply for coverage as soon as you can.

1. Are there people in my life who depend on me financially?

If there are people you support financially, then you almost definitely need life insurance. It doesn’t matter if those people are your spouse, your kids, your siblings, or your parents. If someone were to be left in the lurch financially upon your passing, that alone makes the case for life insurance.

That said, the answer to this question may not be as straightforward as you’d think. If you have kids and a non-working spouse, the answer may be obvious. But what if you’re single with no dependents, but have a sibling who lives under your roof — a roof you pay for? In that case, you could make the case that your sibling depends on you financially, and you should put coverage in place so they’re protected in case something bad happens to you.

2. Are there people in my life who might get hurt financially if I were to pass away?

This may seem like a rehash of the question above, but it isn’t. The above question asks if you support anyone financially. If you’re a stay-at-home parent, you may not provide financial support for anyone in your family. But that doesn’t mean your family wouldn’t get hurt financially if you were to pass away.

If that were to happen, your surviving spouse might struggle to pay for childcare — and might therefore take a hit to their income. Or, your spouse might incur the cost of a nanny or housekeeper to make up for the many tasks you’re no longer around to complete. That alone makes the case for life insurance.

Make the right call

It’s easy to assume you’re too young to need life insurance, or you don’t need a policy simply because you don’t have children. In reality, there are many different scenarios where life insurance becomes necessary. If you’re not sure what to do, ask these simple questions. And if you answer yes to even one, consider getting moving on an application.