Everyone Needs Life Insurance — Even If You Think You Don’t

Depending on what phase of life you’re in, life insurance might feel more like an abstract concept, not quite something you “need.” Maybe you have a good amount of savings already, or you rent your home. The bottom line is, life insurance isn’t just for folks with kids. It’s a safety net everyone should have, no matter their circumstances.

If you fall into one of these categories, it might be time to rethink if life insurance is for you.

In many cases, employer-provided life insurance is only a baseline.

• If you’re no longer employed by the company, you could lose your coverage.
• Plans tend to leave out financial planning benefits, like mortgages or college tuition.
• Coverage is often only one or two times your salary, which is less than what you’d need for long-term security.

Even without a mortgage, your loved ones could be left with significant expenses, including:

• Funeral or cremation costs — about $7,848 on average, according to the National Funeral Directors Association.
• Credit card debt.
• Medical bills.
• Student loans. The average student loan amount for Gen Z is $22,950, per Statista.
• Estate or legal fees.

Savings are helpful, but it’s typically not enough to cover the continued costs your loved ones may need long-term, including:

• College tuition.
• Ongoing medical car or unexpected health emergencies.
• Mortgage payments. The average mortgage loan is $329,854, according to Statista.
• Long-term care for aging family members.
• Emergency costs like job loss.
• Support for dependents with special needs or disabilities.

It’s true that some health issues may exclude certain policies, but it’s best not to speculate; there’s likely a policy that fits your needs.

• Some insurers, like AAA, offer simplified life insurance — which skips the medical exam.
• Guaranteed issue policies accept most applicants, regardless of health.

Get A Life Insurance Quote

Sarah Vincelette

Based in Rhode Island, Sarah has been a copywriter and content producer with AAA Northeast since 2021. When she’s not scouring the best spots for all things food and drink or whipping up her own versions of tasty meals, you can often find her in the garden, planning her next trip or sipping on (another) hot coffee.