Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from …
Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, like American Express, but our reporting and recommendations are always independent and objective. Getting life insurance is not on most people’s priority lists. It can feel like a hassle to go through the process of scheduling an exam and sharing your medical history. The reality, however, is that life insurance can be a useful part of your overall plan to make sure your assets, your property, and the financial security of your loved ones can withstand the worst-case scenario of your sudden death. This is especially true if you have minor children or dependents. In general, you may not need life insurance until you have someone who is financially dependent on you, because life insurance is designed to protect those individuals from financial hardship if you (and your income) were no longer here. I’ve even used that rule of thumb myself in the past. But a rule of thumb is just that: a general guideline, a little bit of context to help you make a decision. You still need to dig into the details of your specific situation to determine the best solution. That’s exactly what my wife and I did when we each made the decision to purchase life insurance policies, even though we don’t have children. Why I went against the general guideline and got life insurance, even though I don’t have dependents My wife, Kali, is not financially dependent on me.
