The main purpose of life Insurance is to ensure that your immediate family has financial support in the event of your death. However, not everyone needs life insurance. Life Insurance proceeds are a handy source of cash to pay the deceased’s debts, funeral expenses, and replace missing income. So, people who have no minor children or financial obligations really don’t need life insurance.
The general rule is that you only need life insurance if you have dependents. Typically, dependents are children who still live at home or have yet to graduate from college. But a dependent could be anyone who is financially dependent on you, adult child, spouse, sibling, or an aging parent.
There are additional purposes of life insurance such as to build retirement savings, assist with long-term care expenses, and provide funds for catastrophic illness.