Do I need life insurance?

[Anonymous]

28/female here. Single, no kids. A family member suggested I start paying for life insurance. Is this really needed, even though I have no kids?

[Anonymous]

If there is no one dependent on you, and your estate would include enough to pay for your burial, there is no reason for you to have life insurance.

[Anonymous]

OP here. That's what I was thinking. I have around $8,000 in debt (car loan), but that's it. I don't have much for assets though. I don't own a home and have *very* little savings.

[Anonymous]

Anonymous wrote:OP here. That's what I was thinking. I have around $8,000 in debt (car loan), but that's it. I don't have much for assets though. I don't own a home and have *very* little savings.

You don't need to worry about your debts. At most whoever has the note on the car will get the car and your savings, but none of your family is going to be responsible for it. I agree that life insurance is for when you have dependents, and there's no point in you purchasing it.

[Anonymous]

I am so annoyed when i see those Gerber commercials for life insurance for your baby. How crazy is that!

[Anonymous]

OP here. Thanks again! Last question, could there potentially be any BENEFIT to it, though? I keep seeing ads/commercials for life insurance only $10/month. I'm assuming it's not that easy/cheap, but if it WAS- would there be any upside of me having it?
I guess I just don't fully understand what it actually does, in cases where there's no dependents.

[Anonymous]

The only benefit is that you may be able to lock in a rate before you get older or develop health problems. But you're young, presumably healthy, and currently have no need for it. I wouldn't do it.

Honestly, if you're a SAH parent with a spouse who makes good money, I don't even see the need for it then, except that it provides a cushion for that spouse to take time to collect their life/take time off work to be there for a child.

I repeat - no need.

[Anonymous]

Anonymous wrote:OP here. Thanks again! Last question, could there potentially be any BENEFIT to it, though? I keep seeing ads/commercials for life insurance only $10/month. I'm assuming it's not that easy/cheap, but if it WAS- would there be any upside of me having it?
I guess I just don't fully understand what it actually does, in cases where there's no dependents.

The only upsides I can think of would be 1) if you really want to leave money to a relative (maybe you have nieces or nephews, or a parent) or 2) if you want to get a 30 year level premium policy now because you are healthy and life insurance is generally cheaper while you are young and healthy because you fully expect to have dependents in the next 5-10 years.

Neither of those would really be a good reason to me though. Generally, what "it does" when you have no dependents is generate profits for insurance companies.

[Anonymous]

Anonymous wrote:Honestly, if you're a SAH parent with a spouse who makes good money, I don't even see the need for it then, except that it provides a cushion for that spouse to take time to collect their life/take time off work to be there for a child.

I repeat - no need.

My wife is a SAHM and I make $90k. We have $1 million in term life insurance for each of us. If she died, I'd would probably stay home until the money ran out.

[Anonymous]

I do think you can lose eligibility to get any kind of life insurance if you do develop a serious illness. So, you might want to see about a rock-bottom insurance you could get. And yes, you could get a term policy for $10 a month.

[Anonymous]

Anonymous wrote:I am so annoyed when i see those Gerber commercials for life insurance for your baby. How crazy is that!

I thought the same thing until I read a blog of a mom with a severely-disabled child who wished she had signed up for it at birth. She had to stop working to take care of her child and will have little retirement savings once he passes in his twenties.

[Anonymous]

Anonymous wrote:28/female here. Single, no kids. A family member suggested I start paying for life insurance. Is this really needed, even though I have no kids?

Before you spend your money on life insurance, buy disability insurance. There is a much greater chance of you becoming disabled than dying.

[Anonymous]

Gerber life is a scam. Not even that highly rated (A vs A+ or A++ for traditional top tier companies.)

But to OP's point - no, you don't need it now, but if your life plans include a home purchase or marriage/kids within 4-5 years, a policy will be cheaper for you now than later.

[Anonymous]

Anonymous wrote:If there is no one dependent on you, and your estate would include enough to pay for your burial, there is no reason for you to have life insurance.

+1

[Anonymous]

ITA if burial cost is not an issue then the main thing to consider is replacing your income for your family/spouse/children or whoever depends on you. If no one depends on you and burial cost is taken care of not really a need to get insurance.