The biggest question is, does anyone else depend on your income? If you were gone, would your love ones struggle financially due to your loss?
If you’re the only one that depends on your own income, life insurance might not be your biggest priority right now. There are a few exceptions though..
Children depend on us for care, guidance and resources. If you have kids that depend on your income, you need term life insurance. The age of your children depends on how long you’ll need the insurance – most likely until they graduate college.
If It’s Offered By Your Employer
If your employer offers life insurance for free, there’d be no reason not to take it. If you have dependents though, the life insurance offered through work will most likely not be enough. Dave Ramsey recommends having 10 to 12 times your income in term life insurance coverage, and no more than 50% of that life insurance through your employer.
If You’rE Drowning in Debt
Unfortunately, most of us have some debt. If you’re in the “single with student loans” category, your best bet would be to get some term life insurance. This would make sure your loved ones are not left with your student loan debt. It’s more affordable than you think, especially if you are young.