Who Really Needs Life Insurance (And Who’s Wasting Their Money)

By Scott W. Taubman, CFP®

Let’s be real. Life insurance isn’t something people sit around talking about on a Saturday afternoon.

It’s uncomfortable. It raises big questions—about money, mortality, and what happens when we’re no longer here to provide for the people we love.

But uncomfortable or not, the question stands: Do you actually need it?

The answer isn’t as black and white as most people think. And believe me, after decades in this industry, I’ve seen all sides of the conversation—people who waited too long, people who overbought, and folks who genuinely didn’t need it but were sold anyway.

Let’s set the record straight.

When Life Insurance Makes Sense

If any of the following describes your situation, we’re not talking about “nice to have”—we’re talking about necessary.

1. You’re Part of a Financially Intertwined Couple

You pay bills together. You plan for the future together. But what if one of you isn’t there tomorrow? The rent still needs to be paid. Groceries still need to show up on the table. Life insurance steps in when the unthinkable happens.

2. You’re Raising Children

If you’ve got kids depending on your income, directly or indirectly, life insurance becomes a lifeline. It’s not about making them rich. It’s about making sure there’s enough to maintain stability. That includes everything from diapers to diplomas.

3. You Own a Home

A mortgage doesn’t disappear when you do. Your family should never have to ask, “Can we afford to stay?” A policy can wipe that debt clean or give them time to figure out the next step—on their terms.

4. You Run a Business

You’ve built something. Maybe with partners. Maybe on your own. If you're gone, things can unravel quickly. A policy can fund a buy-sell agreement, pay off business loans, or simply keep your employees paid while leadership transitions happen.

5. You Want to Leave a Legacy

Whether it’s for grandkids, a church, or a scholarship fund, life insurance allows you to leave a lasting legacy with purpose. It’s one of the most tax-efficient tools for transferring wealth, especially if done right.

And When It Doesn’t

Now here’s the part most agents won’t say out loud:

1. You’re Single, No Dependents, No Debt

If you don’t owe much and no one’s relying on your paycheck, you might not need coverage right now. And that’s okay. Life changes—this might change too.

2. You’ve Built Enough Wealth to Self-Insure

For high-net-worth individuals, the goal may not be protection. It may be a strategy. And sometimes that strategy says: skip the premiums, use your assets. Just make sure you’ve reviewed it with someone who gets the full tax and estate implications.

A Smarter Way to Think About Coverage

You’ve probably heard terms like “term” and “whole life” thrown around like everyone’s supposed to know what they mean. Let me simplify it:

• Term insurance is affordable and expires. Great for short- to mid-term needs, such as raising kids or paying off debt.

• Permanent insurance (whole, universal, etc.) costs more, never expires, and builds cash value that you can borrow against or use strategically later in life.

Neither is “better.” The right fit depends on your current stage and the problem you’re trying to solve.

Also, your health matters. Age and medical history can affect cost and eligibility. The longer you wait, the more you might pay—or the harder it may be to get approved.

Don’t Rely on Guesswork

If I’ve learned anything from hundreds of client meetings, it’s this: assumptions can cost you.

We always run the numbers. I use a Life Insurance Needs Calculator with every client—not to upsell them, but to get real clarity.

Sometimes it tells us they’re underinsured.
Sometimes they’re overpaying.
But almost always, it gives them peace of mind—because they finally know.

Let’s Be Honest

If your sudden absence would create financial chaos for someone you care about, life insurance isn’t something to keep on the back burner.

But if your world is structured, covered, and liquid, and no one depends on you? Then maybe not.

It’s not about buying because you’re “supposed to.” It’s about understanding what’s at stake and making a decision with your eyes open.

That’s what I help people do.

Not sell. Not scare. Just bring clarity to a conversation that most people would rather avoid.

When you're ready to figure it out, I’ll be here.