Want help navigating life insurance?

Talk with one of our life insurance specialists today. Call 1-866-207-9160 or schedule a call.

Life insurance can be a key part of a financial plan, but it’s not for everyone. If you have no dependents and are wealthy enough to cover final expenses, it might not be a priority for you. However, if you have a family, debts, or future plans, it could be a smart choice. Wondering if it’s right for you? Read on to find out.

Who should have life insurance?

Generally, life insurance benefits anyone with financial obligations or loved ones who depend on them. Here are some groups who should strongly consider it:

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Couples

If one partner relies on the other's income, life insurance can replace support

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Singles

Even if you’re single, you may need to cover debts, leave an inheritance, or fund a charitable gift; plus, buying insurance now locks in lower rates for the future

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Multigenerational households

Those supporting aging parents, kids or both, can use life insurance to provide ongoing care

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New parents

Protect your child’s financial future by ensuring that funds are available for education, child care and other needs

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Stay-at-home parents

Those who manage child care, household tasks and more play an important role; life insurance can provide funds to cover those duties if they’re no longer around

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New homeowners

A life insurance policy can cover mortgage payments if you're no longer there to contribute

How much life insurance do you need?

This largely depends on your goals. Two popular methods for calculating coverage are the:

  • Lump sum method  — This considers everything from outstanding debts, funeral expenses and taxes to household and emergency needs and educational costs
  • Income replacement method — This approach estimates how much is needed to replace part of your income for a set period, often until your youngest finishes school or the mortgage is paid off

Why is life insurance important in financial planning?

Life insurance isn’t just a policy; it’s a tool for building financial stability. The payout offers liquidity that can be easily distributed to beneficiaries without delays. It also provides tax advantages and can even serve as collateral for loans in certain cases.

Is employer-provided life insurance enough?

Employer plans are a great perk, but they often don’t offer enough coverage to fully protect your family. Plus, it’s tied to your job, so if you leave, you might lose the coverage.

Can you use life insurance while alive?

Yes, there are several ways to use it while you’re still around. Many permanent life insurance policies allow you to access the cash value to cover expenses, education or emergencies. Others include living benefits for critical or terminal illnesses.

The bottom line

If you have dependents, significant debts or future financial plans, life insurance can be a powerful tool to protect your loved ones. Even for those without immediate needs, early planning could save you money and stress, so take time to evaluate your life situation and consider how life insurance fits into your goals.

Need help navigating life insurance?
Talk with one of our life insurance specialists today. Call 1-866-207-9160 or schedule a call.

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