4 Reasons You Need Life Insurance

LaAs a personal finance blogger, I am ashamed to admit this. I’ve been saying this for years but now I plan on getting serious about this. The truth is… We don’t have any life insurance.  We used to have a small amount paid for by our previous employers, but that was almost two years ago…

Michelle Schroeder-Gardner

Last Updated: March 21, 2025

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LaCheck out this list of 4 reasons why you need life insurance.As a personal finance blogger, I am ashamed to admit this. I’ve been saying this for years but now I plan on getting serious about this. The truth is…

We don’t have any life insurance. 

We used to have a small amount paid for by our previous employers, but that was almost two years ago and it no longer exists so it’s not like it helps us at all.

We will absolutely add life insurance before we start a family, but it wouldn’t hurt us to start searching now.

Life insurance is so very important.

The main reason most get life insurance is because it can help your loved ones and anyone who depends on you. This way they can still pay the bills and grieve without having to worry about money. There are many more reasons to get life insurance though!

Below are four reasons for why you may need life insurance. Even if you don’t think you do, there might be a reason below so I suggest you continue reading!

If you are looking for life insurance, I recommend checking out Lantern.

1. Do you have a family?

If you have a spouse and/or children who depend on you and your income, then you should have life insurance.

Life insurance can help your family so that they can continue to pay their normal day-to-day bills and any debt that you may leave behind. Life insurance may even help them pay off the mortgage, pay for their college education, and more.

Just think about it. What would your family do without your income? Would they be limited?

2. Has anyone co-signed a loan for you?

If anyone has co-signed on a loan so that you could get approved, then you MUST have life insurance. This includes car loans, student loan debt, a mortgage, and so on.

Too many people forget about this. Then, when they pass away their loved one who was so nice to co-sign on a loan is left with the debt to pay.

I’m sure you don’t want to do this to anyone. If you have life insurance, then this can be used to pay off your debt so that your co-signers aren’t stuck paying your debt.

It’s the responsible thing to do.

Related: Policygenius Review: Easy & Affordable Way To Get Life Insurance

3. Are you young and healthy?

If you are young, then you may be able to qualify for a cheaper life insurance plan. Many young and healthy people skip life insurance but now may be the time since it is cheap.

If you sign up when you are younger, you may be able to lock in a cheaper plan and give yourself peace of mind for years to come. This is a big reason for why we are thinking about getting it now even though we don’t have children.

4. Do you know how much a funeral is?

Life insurance can help pay for your funeral.

The average funeral is $7,000 to $10,000. If something were to suddenly happen to you, who would have to pay for your funeral expenses?

I know no one likes to think about that, but it’s all about being responsible and caring for your loved ones even if something has happened to you.

Do you have life insurance? Why or why not? If you do, how much do you spend each year?


Michelle Schroeder-Gardner

Author: Michelle Schroeder-Gardner

Hey! I’m Michelle Schroeder-Gardner and I am the founder of Making Sense of Cents. I’m passionate about all things personal finance, side hustles, making extra money, and online businesses. I have been featured in major publications such as Forbes, CNBC, Time, and Business Insider. Learn more here.

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  1. Mike

    There are many more reasons to have life insurance. I won’t get into to all of them. Been around too long in this business to see all the misnomers. Age really has little to do with the need for life insurance. Not a reason to not have life insurance. Who is going to cover all responsibilities for the future, the expenses and income losses if the unthinkable occurs? What would happen if a business partner or key employee died? Terrible things happen unexpectedly to even very healthy people who were in the wrong place at the wrong time. Parents killed in a car wreck is not unusual. 40 year old women dying of breast cancer that was not caught under it had spread. My wife worked with a perfectly “healthy” woman a number of years ago who was a tiny young woman, with children. She was a breadwinner at her household being a senior finance manager and died of breast cancer at age 40. Healthy 35 year falls over dead while playing recreational basketball. If you are a senior, have you planned for the inevitable? How are you going to pay and make sure your loved ones aren’t financially burdened in their grief? This is real life stuff and can cause financial devestation. Some people are going to be statistics whether they believe it or not. It is just life. You can protect your loved ones and your business interest by putting the financial risk on a life insurance company to make sure death does not impact what is most important to you and those around you. If you have a family, you financially insure their well being even if you are no longer able to. Hope this was helpful to anyone on the fence to take action.