Do I need life insurance? It depends on your situation | finder.com
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Do I need life insurance?

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The right policy can provide protection for your loved ones without breaking your budget.

Life insurance isn’t one-size-fits-all, and the right policy for you will depend on where you’re at in your life.

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Compare quotes from 16 life insurance companies side by side.

  • Compare multiple providers
  • Calculate how much coverage you need
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Why we like: Policygenius

Compare quotes from 16 life insurance companies side by side.

  • Get the coverage amount and term that's right for you.
  • Choose between term or whole life insurance.
  • Easy online application process.
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Is there a perfect age to get life insurance?

No. Many people get life insurance after a major milestone, such as having kids, buying a house, getting a new job or getting married. But the level of coverage you need will depend on your income, expenses and needs — and you’ll likely need to adjust your coverage as you age.

Age Life events Financial obligations Types of insurance to consider
18-25
  • Start full-time work
  • Move out on your own
  • Start accumulating wealth
  • Everyday living expenses
  • Small personal debt
  • Disability
25-35
  • Increase in income
  • Purchase a house
  • Increase in debt
  • Marriage
  • Children
  • Short-term debts
  • Spouse and children
  • Everyday living expenses
  • Mortgage
  • Life insurance
  • Disability
  • Critical illness
35-45
  • Increase in earnings
  • Reduction of debts
  • Outstanding mortgage and personal debt
  • Investments
  • Everyday living expenses
  • Retirement fund
  • Life insurance
  • Disability
  • Critical illness
45-55
  • Maximum earnings
  • Preparing for retirement
  • Less financial commitments as children move out
  • Outstanding mortgage and personal debt
  • Investments
  • Everyday living expenses
  • Retirement fund
  • Life insurance
  • Disability
  • Critical illness
55 and Over
  • Protecting your wealth
  • Retire from full-time work
  • Finance retirement with savings
  • Everyday living expenses
  • Any outstanding debts
  • Medical costs
  • Funeral Costs
  • Life insurance
  • Critical illness
  • Funeral or burial expenses

What types of life insurance are available?

The main types of insurance available are:

  • Life insurance. Life insurance provides a lump sum benefit in the event of death or terminal illness.
  • Disability insurance. Disability insurance provides a lump sum benefit if the policyholder suffers a disability as defined in their policy.
  • Critical illness insurance. This coverage provides a lump sum benefit if the insured suffers a critical illness that’s specified in their policy — most policies cover up to 40 different conditions, including stroke, cancer and heart attack.
  • Funeral or burial insurance. Funeral insurance provides a lump sum benefit to help pay for funeral costs and other outstanding expenses.
Name Product Issue Ages Coverage Range Medical Exam Required
20 to 60 years old
$100,000 to $8,000,000
No
Term life insurance with no policy fees and the freedom to cancel anytime. Simple application process that can get you approved for coverage instantly.
20 - 80 years old
$25,000 to $10,000,000
No
Quickly get a quote for coverage with this marketplace, which compares term & whole life insurance policies from 45+ carriers.
18 - 85 years old
$10,000 to $10,000,000+
Depends on provider and policy
Compare quotes from 16 life insurance companies side by side.
21 - 54 years old
$50,000 to $1,000,000
No
Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.
18 - 75 years old
$100,000 to $5,000,000
Depends on provider and policy
Apply for a simple instant-decision policy free of charge. Compare quotes from multiple A-rated carriers.
18 - 80 years old
$50,000 to $25,000,000
Depends on provider and policy
Get a quote within minutes from more than a dozen insurers.
18 - 75 years old
$25,000 to $10,000,000
Yes, for policies over $1 million
Term life insurance with no medical exams for $1 million of coverage or less. Online application gets you a decision in 10 minutes.

Compare up to 4 providers

What type of coverage do I need?

Your personal life insurance needs will depend at where you’re at in your life. It’s worth reviewing your life insurance every year to ensure you have enough coverage in place.

What to consider when thinking about buying life insurance

When comparing life insurance coverage options, ask yourself:

  • How many people depend on me financially?
  • How long could my dependents survive financially without me?
  • How long will it take for my children to become financially independent?
  • Are the assets I’m leaving behind worth enough to take care of my family?
  • How much debt am I leaving behind?
  • Would my business flop if I was no longer around?

Do you still need life insurance if you’re retired?

It’s natural that life insurance needs will reduce once people enter their retirement years and see their financial obligations change. After retirement, live insurance can help you:

  • Give an inheritance to your children or loved ones
  • Pay for funeral expenses, legal fees or taxes
  • Tie up any debts left behind

You could use existing assets in the event of your death, such as:

  • Savings
  • Property
  • Other acquired assets or investments

Bottom line

If you have children or loved ones who depend on you financially, a life insurance policy can help provide for them if you’re no longer able. Compare life insurance policies from different insurers to find the coverage that best suits your needs and budget.

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