Do I Need Term Life Insurance If I Don't Have Kids?

Many young professionals assume life insurance is only for parents protecting their children's future. But what if you don't have kids? Do you still need coverage? The answer depends on your specific financial situation, but for many people without children, term life insurance still makes excellent financial sense. Let's explore when it does and doesn't make sense for you.

The Short Answer: It Depends on Your Financial Situation

Life insurance isn't about having kids, it's about having financial obligations and people who depend on your income. Even without children, you may have:

• A spouse or partner who relies on your income
• Parents or siblings you support financially
• A mortgage or other significant debts
• A business partner who depends on you
• Future goals you want to ensure happen

If any of these apply to you, life insurance deserves serious consideration.

Scenarios Where You Need Coverage (Even Without Kids)

1. You're Married or Have a Long-Term Partner

If you share financial responsibilities with a partner, life insurance protects them from financial hardship if you die.

Questions to ask:

• Could your partner afford the mortgage/rent alone?
• Would they have to drastically change their lifestyle?
• Do you have joint debts (mortgage, car loans, credit cards)?
• Does your partner rely on your income for daily expenses?
• Would your partner need time to grieve without worrying about money?

Example: Alex and Jordan, both 30, married, combined income $120,000

• Mortgage: $350,000
• Combined living expenses: $5,000/month
• Each earns $60,000
• If Alex dies, Jordan's $60,000 salary can't cover the mortgage ($2,100/month) plus living expenses alone

Solution: Each carries $400,000-$500,000 term life policy

• Covers mortgage
• Replaces income for 5-7 years
• Gives surviving spouse time to adjust financially
• Cost: $25-35/month each

2. You Have Significant Debt

When you die, certain debts don't disappear. Someone will be responsible for:

Joint debts: Spouse or cosigner becomes fully responsible

• Joint mortgages
• Joint car loans
• Joint credit cards
• Joint student loans (for loans taken out after marriage)

Debts secured by property: Must be paid or property is sold

• Home mortgage
• Car loans

Cosigned loans: Cosigner is fully liable

• Student loans with parent cosigner
• Business loans cosigned by partner or parent

Example: Sarah, 28, single, earning $65,000

• Student loans: $50,000 (parents cosigned)
• Car loan: $15,000
• Credit cards: $8,000
• Total: $73,000

If Sarah dies:

• Her parents become responsible for $50,000 student debt
• Her estate must pay car loan and credit cards or assets are sold

Solution: $100,000 term life policy

• Covers all debts
• Covers funeral expenses ($10,000-$15,000)
• Cost: $12-15/month

3. You Own a Home with Someone

Homeownership creates significant financial obligations:

If you're on the mortgage with:

• Spouse: They inherit the house but also the full mortgage payment
• Partner (not married): They may not automatically inherit the house, creating legal complications
• Family member: They're responsible for the full mortgage

Example: Marcus and his sister co-own a condo, 50/50

• Purchase price: $400,000
• Mortgage: $320,000
• Monthly payment: $2,400

If Marcus dies:

• Sister inherits Marcus's 50% but must make $2,400 payment alone
• She might have to sell at a loss or struggle with unaffordable payments

Solution: Each carries $200,000 policy

• Covers remaining mortgage balance
• Allows survivor to keep home or sell without pressure
• Cost: $15-20/month

4. You Financially Support Family Members

Even without kids of your own, you may support:

• Aging parents
• Siblings with disabilities
• Nieces or nephews
• Other relatives

Questions to ask:

• Do you send regular financial support to family?
• Do family members depend on your income for medical care, housing, or daily expenses?
• Are you planning to care for aging parents?
• Would your death create financial hardship for family?

Example: Jennifer, 33, earns $85,000, sends $1,000/month to parents

• Parents rely on her support for living expenses
• Parents have limited retirement savings
• Jennifer wants to ensure they're cared for if she dies

Solution: $300,000 term life policy

• $1,000/month × 25 years = $300,000
• Ensures parents can maintain lifestyle
• Cost: $20-25/month

5. You're a Business Owner or Have Partners

If you own a business, your death creates financial complications:

Sole proprietor:

• Business may shut down immediately
• Outstanding business debts may fall to your estate
• Employees lose jobs

Partnership:

• Partners need to buy out your ownership stake
• Your family may become unwanted partners
• Business disruption during transition

Example: David co-owns a marketing agency, 50/50 with his business partner

• Business valued at $1 million
• David's 50% worth $500,000
• Buy-sell agreement requires buyout upon death

Without insurance:

• Partner has to come up with $500,000 or bring in outside investor
• David's family loses potential income from the business
• Business may fold

Solution: Each partner carries $500,000 policy on the other

• Funds buy-sell agreement
• Smooth ownership transition
• Protects both family and business
• Cost: $30-40/month

6. You Want to Leave a Legacy

Even without children, you may want to:

Leave money to:

• Nieces and nephews
• Siblings
• Parents
• Charity
• Friends

Example: Rachel, 29, single, no kids, close to her niece and nephew

• Wants to fund their college education
• Wants to leave something to her favorite charity

Solution: $250,000 term life policy

• $100,000 each to niece and nephew for college
• $50,000 to charity
• Cost: $14-18/month

7. You Have Cosigners on Loans

If someone cosigned a loan for you, they're legally responsible if you die:

Common cosigned loans:

• Student loans
• Car loans
• Personal loans
• Business loans

Example: Tom's parents cosigned $60,000 in student loans

• Tom earns $55,000, making payments fine
• If Tom dies, parents (retired, on fixed income) owe $60,000

Solution: $75,000 term life policy

• Covers student loans
• Covers funeral costs
• Relieves parents of burden
• Cost: $10-12/month

8. You're Planning to Have Kids Eventually

If you're planning to have children in the next 5-10 years, buying life insurance now makes financial sense:

Lock in lower rates: Premiums increase with age. Buying at 28 vs. 35 can save thousands over the policy term.

Guarantee insurability: Health can change. Lock in coverage while you're healthy.

Example: Emily, 27, plans to have kids in 3-5 years

• Buys $750,000, 30-year term now
• Premium: $25/month
• If she waits until 32 (after having kids), same policy costs $32/month
• Waiting costs: $7/month × 12 months × 28 years = $2,352

Scenarios Where You Might Not Need Coverage

1. You're Single with No Debt and No Dependents

If you:

• Have no spouse, partner, or dependents
• Have no debt (or minimal debt easily covered by your estate)
• Have no one cosigned loans for you
• Have sufficient assets to cover funeral costs
• Don't have specific legacy goals

You may not need life insurance right now.

However: Even in this situation, $100,000-$250,000 policy is cheap ($12-18/month) and ensures funeral costs are covered and locks in low rates for the future.

2. You're Retired or Financially Independent

If you:

• No longer work or have minimal income to replace
• Have no debts
• Have substantial savings and investments
• Have no one depending on your income

You likely don't need term life insurance.

Note: You might consider permanent insurance for estate planning, but that's a different purpose.

3. Your Employer Provides Sufficient Group Coverage

Some employers provide generous group life insurance:

If your employer provides:

• 3-5x your annual salary in coverage
• This amount is sufficient for your needs
• You don't have dependents or significant debts

You might not need additional coverage.

However, consider:

• Group coverage ends when you leave the job
• You can't take it with you
• Getting individual coverage locks in rates and portability

Smart strategy: Get small individual policy now (locks in rates), rely on group coverage for additional amount while employed.

How Much Coverage Do You Need Without Kids?

Use this framework to calculate your needs:

Immediate Expenses

• Funeral costs: $10,000-$15,000
• Final medical bills: $5,000-$20,000
• Outstanding credit card debt: [Your amount]
• Other immediate expenses: [Your amount]

Subtotal: $15,000-$50,000+

Debt Coverage

• Mortgage balance: [Your amount]
• Student loans: [Your amount]
• Car loans: [Your amount]
• Other debts: [Your amount]

Subtotal: $0-$500,000+

Income Replacement

• Annual salary: [Your amount]
• Years of replacement needed: 5-10 years (to allow spouse/partner to adjust)
• Income replacement need: Salary × Years

Subtotal: $0-$1,000,000+

Specific Goals

• Support for family: [Your amount]
• Legacy to charity/family: [Your amount]
• Business buyout: [Your amount]

Subtotal: $0-$500,000+

Total Coverage Need: Add all subtotals

Example Calculations

Single person, no debt:

• Funeral: $15,000
• Total need: $50,000-$100,000

Married couple, mortgage, no kids:

• Funeral: $15,000
• Mortgage: $300,000
• Income replacement (5 years × $60,000): $300,000
• Total need: $500,000-$600,000 each

Single, supporting parents:

• Funeral: $15,000
• Parent support ($1,000/month × 20 years): $240,000
• Total need: $250,000-$300,000

The Cost Without Kids

Good news: without the higher coverage amounts parents typically need, your premiums are very affordable.

Common coverage amounts for those without kids:

$100,000 coverage, 20-year term:

• Age 25: $8-10/month
• Age 30: $9-11/month
• Age 35: $11-14/month

$250,000 coverage, 20-year term:

• Age 25: $12-15/month
• Age 30: $14-17/month
• Age 35: $16-20/month

$500,000 coverage, 20-year term:

• Age 25: $18-23/month
• Age 30: $21-27/month
• Age 35: $25-32/month

For the cost of a couple of coffees per week, you can protect your partner, pay off debts, and leave a legacy.

Common Questions from People Without Kids

"Isn't life insurance just for families with children?"

No. Life insurance is for anyone with financial obligations or people who depend on them. Marriage, debt, homeownership, business ownership, or family support all create insurance needs.

"I'm single and healthy, why would I need it now?"

Two reasons: (1) Lock in low rates while young and healthy, (2) Guarantee insurability in case health changes before you have kids or other dependents.

"My partner and I both work, do we both need coverage?"

If you share financial obligations (mortgage, rent, lifestyle), yes. Even if both work, losing one income can create significant hardship.

"Won't my assets cover everything?"

Maybe, but consider:

• Assets may be illiquid (house, retirement accounts with penalties)
• Selling assets in a down market to pay debts hurts survivors
• Insurance provides immediate, tax-free cash
• Insurance is often cheaper than the investment returns your assets generate

"What if I never have kids?"

That's fine. You can always reduce coverage, let it expire, or direct the death benefit to other beneficiaries (spouse, siblings, charity, etc.).

Making Your Decision

Ask yourself these questions:

1. Would anyone struggle financially if I died tomorrow?

2. Do I have debts that would burden someone else?

3. Am I planning major life changes in the next 10 years? (marriage, kids, home purchase)

4. Do I have specific people or causes I want to financially protect?

5. Can I afford $15-30/month for protection and peace of mind?

If you answered "yes" to any of these, life insurance deserves serious consideration.

The Bottom Line

You don't need kids to need life insurance. You need:

• Financial obligations
• People who depend on you
• Debt that won't disappear when you do
• Specific goals for your legacy
• The desire to protect those you care about

For most young professionals, even without kids, some amount of term life insurance makes sense. It's affordable, provides peace of mind, and ensures your financial responsibilities don't burden those you leave behind.

Ready to get covered? Get your quote in 18 minutes and discover how affordable protection can be, even if you don't have children. Our licensed agents will help you determine the right coverage amount for your unique situation.