The primary concern that life insurance protects against is leaving loved ones behind with significant burdens like debt or without enough resources to continue their lives. This is especially the case for people who have dependents, but is it as important for people who don’t have kids?
Life insurance is most frequently used as a way to replace someone’s income if they were to pass away. It can help a family maintain their lifestyle after someone passes away, pay off large sums of debt like a mortgage, and set loved ones up for the future.
- Usually do not have college expenses to prepare for
- Usually do not have significant additional expenses (childcare, nannies, housecleaning, other help)
- Their surviving partner will likely be able to support themselves
For those SINKs (Single Income No Kids) out there, you may be able to just set aside money for funeral costs and skip life insurance completely.
- One partner is disabled and can’t work
- One partner makes significantly more than the other
- You have significant debt
That brings us to the last point of having significant debt. Using the last couple as an example, imagine they were married while the surgeon was in residency and had hundreds of thousands of loans. If the surgeon passed away unexpectedly, the social worker would now own that debt. Life insurance would help alleviate that burden.
If you want help looking at if you need life insurance or not, reach out to a CERTIFIED FINANCIAL PLANNER™ who can look at your entire picture.
About the Author - Matt Gray is a Childfree Financial Planner who holds both the Certified Financial Planner® designation and the Chartered Advisor of Philanthropy designation. He enjoys working with his Childfree peers because he enjoys helping solve the specific needs of the Childfree community. Furthermore, he believes choosing a less traditional life path leads to more unique life stories and he loves helping those stories become a reality.