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Who Needs Life Insurance?

If people in your life rely on you financially, life insurance can help support them when you’re gone.

Do I need life insurance?

The quickest way to know whether you need life insurance is to ask yourself one question: Would your death have a financial impact on the people in your life?
If the answer is yes, then you may want to consider life insurance.
Life insurance beneficiaries — who could be your spouse or dependents, for example — can use the money to cover their financial needs, whether that’s paying household expenses or covering debts.

Check out these insurance companies that offer term life insurance

CompanyPolicies offeredOnline purchaseWhat We LikeLearn More
Ethos Life Insurance - Roundup

Ethos

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on Ethos
Term, permanent & no-exam
Yes
  • No medical exam required.
  • Fully digital application.
  • Offers both term and whole life insurance online.
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on Ethos
Ladder Life Insurance

Ladder

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on Ladder
Term & no-exam
Yes
  • Quick online application.
  • Most applicants won't need a medical exam.
  • Coverage limits up to $8 million.
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on Ladder
Fabric Life Insurance - SEM

Fabric

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on Fabric
Term & no-exam
Yes
  • Simple online and mobile application process.
  • Platform offers financial planning tools for parents.
  • Most applicants won’t need a medical exam for term life insurance.
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on Fabric

Who needs life insurance?

Here are a few examples of people who may need life insurance coverage.

Who doesn't need life insurance?

If no one in your life would be financially burdened by your death, you can likely put off buying a life insurance policy. For now, you may find that saving and investing your money in other assets is a better move.
Remember that the younger and healthier you are, the more affordable life insurance is. If you see major life changes on the horizon, such as marriage or children, it may be worth exploring your options to lock in a good price at the right time. It’s a good idea to compare life insurance quotes from a range of companies to get the best possible coverage at the lowest price.

What type of life insurance do I need?

Typically, life insurance falls into two categories:
  • Term life insurance: Is temporary - it lasts a set number of years, such as 5, 10, or 20
  • Permanent life insurance: typically covers the insured person until the end of their life and includes a cash value component.

Term life insurance

Generally speaking, term life insurance is the more affordable and flexible option, and thus it's the better choice for most people. You can tailor term life insurance to cover the years of your life when your death would most affect your loved ones and then reassess when they are able to support themselves.

Permanent life insurance

There are some situations in which permanent life insurance makes more sense, particularly if you want the policy to pay out regardless of when you die. Types of permanent policies include whole life and universal life. Whole life insurance is the most common type of permanent coverage, offering fixed premiums and guaranteed cash value growth. Universal life insurance is more flexible, offering adjustable premiums and death benefits.

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