Should You Get Permanent Life Insurance if You Don't Have Dependents?

iQuanti: Permanent life insurance covers you for life and allows your beneficiaries to be financially protected in case you die. But if you have no kids or other dependents, you may be wondering if permanent life insurance is worth it. Below, we'll help you decide by going over specific situations where you might consider permanent life insurance if you don't have dependents.

When to consider permanent life insurance if you don't have dependents

Here are some reasons why you might consider getting permanent life insurance, despite having no dependents:

To protect your spouse or partner

Your kids may be fully grown and financially independent, or you may not plan on having any kids at all. In either case, you may still want to help your spouse or partner financially in case you die. A permanent life insurance policy guarantees they'll receive funds in the event of your passing.

To provide for other family members

You could name other relatives as your beneficiaries, too. For instance, you may die while your parents or other older relatives are still alive. They may, at some point, require extra financial assistance to deal with the costs of old age. The death benefit can provide them or their caregivers with the funds needed to help them live a comfortable life.

If you have siblings who have younger kids, you could also name them as beneficiaries. Then, if you pass away, they'll have more funds to take care of their children or other family members.

To donate to charity

If you're passionate about a particular cause or organization, you can name charitable organizations as beneficiaries on your life insurance policy. This is a great way to leave a lasting impact on the world, as the death benefit they receive can go a long way. Keep in mind that you may have to contact the organization and let them know they're a beneficiary so they can claim the death benefit when you pass away.

To benefit your advanced long-term financial plan

Permanent life insurance policies also come with a cash value component that grows tax deferred. So, if you have a higher income or more complex long-term financial plan and you've exhausted other tax-advantaged options, cash value could provide you an opportunity to save more. If you get a policy with a fixed rate, like a whole life policy, the cash value can act more like a tax-deferred growth component. And if you get a variable life policy, you could treat it more like an individual retirement account (IRA), where you can invest in stocks and bonds for larger potential gains.

The bottom line

Although permanent life insurance is often used to provide for children, it can still make sense to get a permanent policy if you don't have dependents. You may want to help your spouse or other relatives in your absence or even donate to charity. Beyond that, you can use life insurance as a savings and investment vehicle if you have a complex long-term financial plan. No matter what, though, make sure you evaluate your situation and understand your life insurance needs before shopping for a policy.