Who Needs Life Insurance the Most?

If you were to ask me who needs life insurance the most, I’d probably answer by telling you that almost everyone can benefit by including life insurance in their financial plans. If I was pressed, I say anybody who has people dependent on their income probably needs it “most”. Most families depend on the income of at least one working adult to make ends meet. If that income earner was to suddenly die, a family’s standard of living could suffer. Life insurance makes sure that a family’s standard of living (and financial plans) do not suffer as a result of the loss.

So, let’s make a list, in rough order, of who needs life insurance the most:

  • Single parents
  • Families with dependent children
  • Families without children that rely on the income of both spouses to maintain a lifestyle and/or financial plan
  • Stay-at-home parents
  • Business owners
  • Retirees
  • Single people with no dependents

Here’s a brief reason why each group mentioned needs life insurance…

Single parents

Single parents are at the top of the list because their family is often in the most precarious position should the parent die. Having life insurance means that the child(ren) of the deceased will have the financial means to be supported in accordance with the parent’s wishes.

Families with dependent children and Stay-at-home parents

Many families depend on two incomes. If one breadwinner dies, that income is lost. This loss can have a dramatic impact on the financial well-being of the family. If a non-working spouse passes away, the surviving spouse will have to pay for child care and other domestic services. Life insurance on a non-working spouse can facilitate this, without impacting a family’s long-term financial plans.

Business owners

Business owners often have need for life insurance for both personal and business reasons. In addition to the reasons mentioned above, a business owner’s family will quite possibly need the liquidity of a life insurance benefit in order to keep the business running and/or sell the business to existing partners.


Often, retirees may not need a lot of life insurance, but a detailed review of their financial plans can find ways where having life insurance is a benefit to their overall retirement plans. In addition to providing cash to pay for final expenses, life insurance proceeds can be used to provide income to replace a pension that terminates upon the death of the beneficiary.

Single people with no dependents

Single people who do not have anyone other than themselves relying on their income, don’t really need life insurance. Often though, it makes sense to purchase it for two reasons. First, should something happen, you might not want to leave the burden of final expenses to your family. Second, buying life insurance now can lock in low rates and protect your ability to buy insurance in the future. For young people, large amounts of life insurance can be purchased for very little money.

The bottom line is that if someone will suffer financially when you die, you probably need life insurance.

About The Author

Richard Eddy

Founder of Rates4Term.com and Cona Financial Group Richard Eddy has been assisting clients with their life insurance needs since 2005. He is an expert helping people find the right policy to fit their specific situation. In addition to insurance planning, he is also experienced in a wide range of financial planning topics including investment and portfolio analysis, tax planning, retirement planning and estate preservation strategies. You can call Richard toll-free at (877) 883-3561.