Who is most likely to need life insurance?

Asked by: Prof. Cleveland Anderson Sr.  |  Last update: June 1, 2025
Score: 4.4/5 (24 votes)

Parents, small business owners, retirees and those with dependents could benefit significantly from life insurance policies. Term life insurance is typically more affordable and suitable for young adults, while permanent policies offer lifelong coverage with a cash value component.

Who needs life insurance most?

People with young children are strongly recommended to have life insurance to protect their family. Homeowners should take out life insurance so that the death benefit can pay off the mortgage. Business owners and those who want to pass down a financial legacy are also advised to purchase life insurance.

Which of the following people likely needs life insurance most?

Final answer: The mother whose children depend on her income needs life insurance more than a person about to retire because her death would directly impact her children's financial stability. A working parent, especially one with dependents, carries significant financial responsibility.

Who are the people most likely to buy life insurance?

Younger adults (Gen Z and Millennials) are more likely than the general population to say they need (or need more) life insurance, representing the largest opportunity for the industry.

Who has the greatest need for life insurance?

Perhaps the demographic with the greatest need for life insurance is young people who have become parents for the first time, according to Peter Colis, a life insurance executive and member of the Forbes Finance Council.

Do You Need Life Insurance? Term, Whole and More, Explained

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Who is likely to have the least need for life insurance?

If you have no financial obligations at your death, have no spouse or dependents that rely on your income now or in the future, or you own no property or business that would need to be purchased at your death by your business partners or liquidated for income needs, then you may not need life insurance.

Who is life insurance best suited for?

Life insurance is an important source of protection for parents and consumers who have financial dependents. You can choose between term insurance, which covers you for a certain number of years, and permanent policies that protect you throughout your lifetime.

Who usually buys life insurance?

Most people who own life insurance are family breadwinners who want to make sure that in the event they die, the future financial needs of dependents, such as a spouse, children or elderly parents, are met.

What is a good age to buy life insurance?

As we age, we're at increased risk of developing health conditions, which can result in higher mortality rates and higher life insurance rates. You'll typically pay less for life insurance at age 25 than at age 40. Waiting until age 60 may mean an even bigger rate increase and limited policy options.

What is the average cost of life insurance per month?

The average cost of life insurance per month is $26.

At what point do you not need life insurance?

Regardless of your age, if you are at a point where you have enough income and assets to comfortably support yourself and the people who depend on you financially, you may not require life insurance. For most people with families, this only happens later in life after their children are grown and self-sufficient.

What not to say when applying for life insurance?

Tobacco use: Lying about smoking on a life insurance application likely constitutes a misrepresentation, even if you only smoke occasionally. Drug and alcohol use: Someone who engages in drug or alcohol misuse may omit this information.

Who typically gets life insurance?

Extended family: While married people typically choose to name each other as their insurance beneficiaries, single people can choose to name anyone who is either related to them or who might depend on them financially. You may also be able to name a partner or good friend to whom you're not married.

Who benefits most from life insurance?

Why is life insurance important? Buying life insurance protects your spouse and children from the potentially devastating financial losses that could result if something happened to you. It provides financial security, helps to pay off debts, helps to pay living expenses, and helps to pay any medical or final expenses.

Who is considered high-risk for life insurance?

Factors that make people high-risk applicants for life insurance
  • Heart disease.
  • Cancer.
  • Diabetes.
  • Chronic respiratory diseases.
  • Autoimmune diseases.

Who are good candidates for life insurance?

Top 8 Types of Life Insurance Prospects
  • Growing families. Couples who have just married or are having kids are likely to purchase life insurance. ...
  • Existing property and casualty customers. ...
  • New business owners. ...
  • New homeowners. ...
  • People with health issues. ...
  • Young professionals. ...
  • People who've recently lost a loved one.

At what point is life insurance not worth it?

The point of life insurance is to replace your income when you die. If you don't have anyone who'll need that income when you die, then you don't need life insurance. Or if you're doing so well financially that you're self-insured, you're still good to go without it.

At what age should you drop life insurance?

At What Age Is Life Insurance No Longer Needed? Life insurance is no longer needed for many people once they reach their 60s or 70s. At this point they have retired, their kids have grown up, and they've paid off their mortgage and other debts.

How much a month is a $500,000 whole life insurance policy?

How much does whole life insurance cost? A $500,000 whole life insurance policy costs an average of $451 per month for a 30-year-old non-smoker in good health. If you get whole life insurance, the premiums you'll pay may vary based on factors like your age, health, gender, and the type of policy you get.

Who really needs life insurance?

Key takeaways. Life insurance can provide financial security for loved ones, covering expenses like daily living, education and debts. Parents, small business owners, retirees and those with dependents could benefit significantly from life insurance policies.

How long do you have to pay life insurance before it pays out?

If you die after two years of buying the policy, the company must pay the death benefit. They can't deny the payment unless you don't pay your premium, made a false statement, or withheld information.

Is life insurance hard to sell?

It's hard to sell because it deals with the topic of death. That's something many people find difficult to consider or discuss.

Who typically should buy life insurance?

You may need life insurance if anyone relies on you financially. People who should consider life insurance include parents of minor children and those with co-owned debt, like a mortgage. Life insurance through your workplace may not be sufficient for your needs.

Who does not need life insurance?

There are people who have saved up enough money to cover all the potential needs discussed above. Many either have no children or children who are financially self-sufficient. With few or no debts, no dependents, and a healthy nest egg saved up, life insurance might not be necessary.

Which person needs life insurance the most?

Who should get life insurance?
  • Parents with young children, or a special needs dependent who they care for.
  • People who have a partner that lives off of their income.
  • Individuals hoping to contribute to mortgage payments or college tuition for their family.