Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

Does Everyone Need Life Insurance?

Jody asks if she needs life insurance if she isn't married and doesn't have kids.

QUESTION: Jody on Facebook asks if she needs life insurance if she isn’t married and doesn’t have kids.

ANSWER: You only need life insurance to take care of things you leave behind that need to be taken care of. There’s no spouse or kids to take care of that count on your income. If you have some debts that you’d like to clean up or enough to cover burial, a small policy might be in order. But if you’ve got $20,000 or $30,000 laying around—enough to cover burial and miscellaneous final expenses just to keep somebody in your family from having to pay for it and you don’t have any debt that needs to be cleared up—then you probably don’t need life insurance at this stage of the game.

Life insurance is to replace your income to someone who counts on it. That’s the main thing. A little bit for burial, but that’s the main thing.

So no, you probably—as a young, single professional—have a little bit of a life insurance policy built into your health insurance policy. There’s usually a $10,000 one or something like that. You should be fine like that. No, you probably don’t need life insurance, but just think about who would be harmed financially if you died, and it doesn’t sound like anybody would be. That’s the point.