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Who needs life insurance?

Whether or not you need a life insurance policy depends on a number of factors. Here, we'll help you learn more about the importance of life insurance and if it's right for you.

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Why is life insurance important?

Life insurance helps provide financial protection for others by paying them a cash benefit upon your death. Whether you're the primary wage-earner in your family, a young adult with debt, an adult caring for your elderly parents, or a business owner, life insurance gives you peace of mind knowing if you unexpectedly pass away, the people you love will have the financial resources they need.

Is life insurance right for you?

Life insurance can seem complex, making it difficult to know if you need coverage. We'll look at different life stages to help you understand if life insurance is right for you.

Young adults and single people

People who are young, healthy, and single often think they don't need life insurance. However, there are many reasons why you may want to consider buying a life insurance policy when you're young and/or single.

  • You have co-signed loans you don't want to leave behind after you're gone
  • You have a parent or sibling who depends on your income for support
  • You want to leave loved ones enough money to cover your final expenses
  • Buying a policy when you're young and in good health can be extremely affordable
  • Buying a policy early in life locks you into lower rates today and gives you coverage you may need in the future
  • The cash value in a permanent life insurance policy, like whole or universal life, can build over time and be used for things like buying a home or paying for college

Married couples

Married couples have important life insurance considerations. For example

  • Does your household depend on both of your incomes?
  • Are you the primary wage-earner in your household with a stay-at-home spouse who depends on you for financial support?
  • If one of you were to unexpectedly pass away, would the surviving spouse have the financial means to make ends meet?
  • Do you want to leave your spouse enough money to cover your funeral and other final expenses?


If you're a parent, your child(ren) depend on you for financial support. If you were to die unexpectedly, life insurance can help

  • Provide your spouse with the money needed to raise your child(ren)
  • Let your family continue to live in their home and maintain their current lifestyle
  • Pay off your mortgage and other debts
  • Provide for your children's future education and healthcare costs
  • Help your surviving spouse cover additional expenses like the cost of hiring housekeeping services, childcare, shopping, and other tasks he or she is responsible for
  • Relieve your spouse of the burden of having to cover your funeral and burial costs

Empty nesters and retirees

While a policy will typically cost you more as you become older, you shouldn't overlook the importance of life insurance. At this stage in your life, considerations for life insurance can include

  • Leaving your loved ones with the money to cover funeral, burial, and other end of life expenses
  • Covering possible probate costs and estate taxes
  • Leaving a legacy to a favorite charity or cause that you care deeply about

Other situations to consider a life insurance policy can include

Being a homeowner

  • Life insurance can pay off your mortgage, helping to ensure it stays in your family after your death
  • Even if your home is paid for, life insurance can help cover other expenses such as taxes, utilities, and home maintenance costs

Running a business

  • If you co-run a business, life insurance can provide your business partner(s) with the funds needed to keep the business going upon your death
  • Life insurance can also help cover business debts and expenses your family may need to cover to keep the business running

Having loans with co-signer

  • If you have outstanding loans that require a co-signer, life insurance can ensure you leave enough money to cover the balance of your debt after you die. Doing so will relieve family members of having to take on your financial obligation should you unexpectedly pass away.

Thinking about life insurance?

As you can see, there are a lot of different situations for buying the financial protection of life insurance. The good news is there are various types of life insurance and most can be fully customized to meet your individual needs and budget.

Learn more about your life insurance options with Liberty Mutual.

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What is life insurance and how does it work?
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Picking a life insurance policy can be a complex and confusing process. Here, we'll answer the most common questions about life insurance so you're confident in deciding what's best for you.

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Please note: Information presented on this page is intended to be general information about insurance and is not specific to Liberty Mutual policies. Policies and coverages vary by state and insurer. Contact your insurance company to understand specifics regarding your policy and coverages.