A 30-second check
Tick anything that applies to you.
Who usually needs life insurance
Parents
Coverage replaces your income or care until your kids are grown, and can pay for college.
Stay-at-home parents
If you're the one caring for the kids and home, your family would need to pay for childcare and help.
Spouses and partners
If your household depends on two incomes, losing one could make the bills impossible to cover.
Homeowners
A policy can pay off the mortgage so your family can stay in the home.
Caregivers
If you support an aging parent or a relative with special needs, coverage keeps that support going.
Business owners
Coverage can fund a buy-sell agreement or help the business survive losing a key person.
People with co-signed debt
Private student loans and other co-signed debts may pass to the co-signer.
Adults 50 and over
A small final expense policy covers funeral costs, which often run into the thousands.
Who may not need it
Life insurance protects other people from a financial loss. If no one would face one, you may not need a policy yet:
- Single adults with no dependents and no co-signed debts, whose savings would cover final expenses.
- Retirees with enough savings to support a surviving spouse and pay off any debts.
- Children, in most cases. Money is usually better spent covering the parents who support them.
Life changes fast
Getting married, having a baby or buying a home are the moments most people realize they need coverage. Buying before those events, while you're younger and healthier, usually costs less.
How much coverage do you need?
A simple way to estimate it is the DIME method. Add up:
| Letter | What to include |
|---|---|
| D: Debt | Credit cards, car loans, personal loans, plus funeral costs |
| I: Income | Your yearly income times the number of years your family would need it |
| M: Mortgage | What's left on your home loan |
| E: Education | The expected cost of your children's schooling |
Then subtract savings and any life insurance you already have, such as coverage through work. The result is a reasonable starting point for your coverage amount.
When to buy
The best time is usually as soon as someone depends on you. Your price is set when you buy, based on your age and health at that moment. Every birthday tends to raise the price of a new policy, and a new health condition can raise it further or make coverage harder to get.
Frequently asked questions
I'm young and healthy. Should I wait?
Waiting usually means paying more. Younger, healthier applicants get the lowest rates, and a term policy locks that rate in for the whole term.
Does a stay-at-home parent really need coverage?
Yes, in most cases. The surviving parent would likely need to pay for childcare, transportation and household help, which adds up quickly.
I have coverage through work. Do I need more?
Possibly. Workplace coverage is often one or two times your salary, which may not be enough, and it usually ends if you change jobs.
Can I get covered with a health condition?
Often, yes. Many insurers cover conditions like diabetes or high blood pressure, and some rate certain conditions more favorably than others. Comparing insurers matters most here.
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