It is not worth making a life insurance when you don’t have a family.

The principle behind life insurance is simple, in theory. It's also morbid, at least compared to
other financial services. You pay small amounts at monthly intervals, so that when you die, a
beneficiary of your choice gets a sum of money approximating what you would have earned had
you stayed alive.

That's the stark truth right there, which a lot of life insurance customers fail to comprehend: the
service is supposed to be nothing more than a replacement plan. The idea is that should your
family suffer a crisis that transcends finances, at least their finances won't be impacted too
negatively. If you die, your spouse and kids won't have to take on multiple jobs, beg for alms,
nor lose the house and car.

Life insurance products offer a way to provide financial funds for beneficiaries after a plan
owner’s death.

Basic life insurance policies are designed to provide replacement funds that can approximately
match what the policy owner was making or a percentage of it.

A life insurance policy on someone with no earnings or someone with no dependent beneficiaries
can be a waste of money.

Term life, whole life, and universal life insurance policies can all be options with some very
different provisions.

A single person with no dependents

If you're a single person with no dependents, you probably don't need life insurance — at least
not yet. Financial experts recommend life insurance particularly for people who financially
support either a spouse, children, or other relatives. That means people other than themselves
rely on their income to live.

That's not to say buying life insurance is a bad idea if you are single and have no dependents —
your designated beneficiary, whoever it may be, will still get a cash payout. However, there may
a better use for the money you would use to pay the premiums.

If you hope to start a family in the future or think you may have to support aging relatives, it may
be smart to hold off buying life insurance until you know how much coverage is appropriate.

One exception: you have debt that won't be forgiven upon death. Some private student loans and
most mortgage loans still need to be repaid, even if the primary borrower has died. If there's no
cosigner or joint owner on your student loans or home loan, whoever inherits your debt will be
responsible for making the payments.

Anyone who anticipates there won't be enough cash in liquid accounts to cover outstanding debt
payments may consider an inexpensive life insurance policy to help make up the difference. In
this case, the best option is usually a term life policy, as it's cheaper and lasts for a specific
period of time.