3 Signs You Don't Need Life Insurance Just Yet

You may not have to spring for those premiums at this stage of the game.

It's often the case that people think they don't need life insurance when, in fact, they do. You might, for example, assume you don't need a life insurance policy because you're fairly young. But your age really shouldn't be a factor in your decision to buy life insurance so much as your financial situation. And so if you're 22 years old but have a child to support, that's reason enough to put a life insurance policy in place.

In some cases, though, you might really be in a situation where you don't need life insurance. Here are a few signs you can probably hold off on obtaining coverage for now.

1. You don't have kids

Whether or not you have children isn't the only factor to consider when deciding whether to buy life insurance. But if you're not responsible for financially supporting any children, then you may decide you don't have to get life insurance right away.

2. You have a financially independent spouse

Maybe you're living child-free and you have a spouse who has a great career with a generous salary. And maybe you and your spouse have made the decision to be romantic partners but maintain financially separate lives, such as having separate bank accounts and credit cards. If that's the case, you might argue that you don't really need life insurance until children come into the mix.

Now, if you and your spouse have taken on an expense jointly, like a mortgage, then in that case, you may want to consider getting a life insurance policy with a benefit that could pay off your home, or a portion of it, in the event of your passing. But if you don't own a large asset together that you're paying off, then you may be able to hold off on life insurance.

3. You don't support any family members

There are some people who are single and child-free who need life insurance. If you have a younger sibling you care for, for instance, then a life insurance policy could buy your sibling some protection in the event something happens to you.

But let's say you're not in that situation. If you're single and don't support a sibling, parent, or any other relative, then there's probably no need to buy life insurance.

The purpose of having a policy is to protect the people who rely on you financially. If no such people exist in your life, then there's no sense in spending your money on life insurance premiums when you can be using it to secure your own financial future -- for example, using that money to build savings in an IRA instead.

Not everyone needs life insurance

The reality is that there are probably many people out there who could benefit from life insurance but don't have it. But that doesn't mean you need a policy. And if these signs apply to you, you may be okay to skip out on life insurance for now -- with the understanding that if your circumstances change, you'll need to reassess your need for life insurance and think about whether a policy makes sense at that point in time.