Life insurance gets a bad rap. Some people think it’s morbid. Others think it’s only for older folks or people with kids. And then there’s the group that says "We don’t need it, we’re healthy and doing fine." But the truth is, there are only two reasons to consider life insurance. Forget all the complicated charts, the salesy brochures, and the jargon about cash value and riders. It all comes down to this: You either owe someone or you love someone.
If either of those applies to you – and for most married couples between 30 and 70, they do — then it’s time to look at life insurance through a new lens.
Let’s unpack both reasons so you can decide if it’s time to take action.
Reason One: You Owe Someone
Let’s start with the less warm and fuzzy one, debt.
Do you have a mortgage? Credit card balances? A car loan? Maybe a business loan you signed for?
If you passed away tomorrow, those debts wouldn’t just disappear. In many cases, your spouse or family would be left picking up the pieces both emotionally and financially. Life insurance can be a simple way to erase that burden. Think of it as a financial safety net for the people left behind. It gives them one less thing to worry about during an already devastating time.
Mortgage protection insurance is one popular option here. It’s designed specifically to pay off your home if something happens to you, so your loved ones can stay in the home you built together, without scrambling to cover the payments.
Bottom line: If you’ve got financial obligations, protect the people who might be stuck paying them.
Reason Two: You Love Someone
Now to the heart of the matter.
If someone you love depends on you financially, whether it’s a spouse, child, grandchild, or even a parent, then life insurance is a way to protect their future.
It’s not about replacing you (because you can’t be replaced). It’s about replacing the income and support you provide, so that life can continue in some sort of normal way if the unthinkable happens. Whether it's covering lost income, funding future education, or just helping your spouse maintain the lifestyle you built together, life insurance can make a massive difference when it's needed most.
This is where financial planning and estate planning start to overlap. Life insurance can be a tool that provides tax-free money exactly when your family needs it, not just for bills, but to carry on.
If you love someone who would feel your financial absence as much as your emotional one, you need to think about getting coverage.
The Bottom Line
You don’t need a ten-point checklist to decide whether you need life insurance.
Just ask yourself two things:
- Do I owe anyone money that they might have to pay off if I’m gone?
- Do I love someone who would be financially impacted if I died?
If you answered yes to either, life insurance isn’t just a good idea. It’s peace of mind.
And if you answered yes to both? Then what are you waiting for?
FAQs
1. Do we still need life insurance if we’re debt-free?
Maybe. If no one depends on your income and you don’t owe anything, you may not need it. But if you still have people who rely on you for financial support — like a spouse or adult child — it’s worth considering.
2. How much life insurance should we get?
A common rule of thumb is 10 to 15 times your annual income, but the right amount depends on your debts, goals, and how much support your family would need. A good starting point is enough to cover your mortgage and replace income for several years.
3. Is term life insurance enough for most couples?
Yes. In most cases, term life insurance is affordable, straightforward, and provides the right coverage during your peak earning and family-supporting years. Permanent policies can be great too, but usually come with higher costs.
4. What if we’re in our 60s or 70s? Isn’t it too late?
Not necessarily. It depends on your health and goals. Even at older ages, a smaller policy can help cover final expenses, leave a gift for family, or settle outstanding debts. It’s never too late to protect the people you love.
5. Can we use life insurance as part of our estate plan?
Absolutely. Many couples use life insurance to pass tax-free money to heirs, pay off estate taxes, or equalize inheritances. It can be a powerful estate planning tool, especially if you have significant assets or business interests.
