I’m 40 Years Old and Still Don’t Have Life Insurance. Here’s Why

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Not everyone needs life insurance. Keep reading to learn why one writer has opted out of coverage. [[{“value”:”

Life insurance is an important part of many people’s financial puzzle. It’s intended to soften the blow of losing a loved one — it can’t replace the person, but receiving a policy payout can make it easier for the people left behind to pay the bills, cover remaining debts, and adjust to life with a new financial reality.

I just turned 40 a few months ago, and it feels like a serious age. It’s also come with some big money moves — for example, I’m buying a house for myself this year. You might expect a 40-year-old to also have life insurance. But while I used to have a policy, I don’t now. Here’s why.

I used to have a term life policy

I had a life insurance policy for a couple years, but it was when my life circumstances were different — namely, I was married. When I combined auto insurance with my ex, I also signed up for a low-cost term life insurance policy, to protect my spouse in case I passed away.

I hung onto this policy until a year after we split up, and I didn’t take the time to change the policy beneficiary (don’t do this — if you get divorced, remove your ex from your life insurance policy ASAP). Then, when COVID-19 hit in 2020, I went looking for ways to save money when I was faced with losing my income (my old career wasn’t pandemic-friendly). At that point, I canceled the old term life policy, and didn’t replace it.

Here’s why I no longer have life insurance

These days, I am without life insurance for a big reason. I’m not single, but my finances are. This means that my money is independent — I pay all my own bills, I don’t live with any other people, and no one is depending on my income to get by. I do have pets, however — three adopted cats who are the best companions in the world.

While I could get a life insurance policy for the express purpose of providing for their care in the event of my untimely demise, I haven’t done so. Instead, I named them in my will and any money I leave behind will go to pay for their care (after satisfying any other expenses). I also lined up someone to care for them, as well as a back-up choice, just in case. I hope the cats remain with me for the entirety of their lives, but no one can see the future. That’s why we plan — and sometimes buy life insurance.

How can you save on life insurance?

Just because I don’t need life insurance doesn’t mean you don’t — unless, of course, you are like me and are without human dependents. If you’ve reached the ripe old age of 40 and have a spouse, children, or both, the odds are good you should have a life insurance policy. People are likely reliant on your income — and even if you don’t have one, you likely take care of a home or children (or both). Here are a few tips to find and save on life insurance coverage:

Lean on term life: Whole life insurance is expensive, because it’ll cover you for your whole life. But what are the odds you’ll need life insurance for your entire life? Instead, consider a term life policy that covers you for long enough to pay off your home or see your kids head off to college.Start early: The younger you are when you get a life insurance policy, the cheaper it is likely to be. I was just 30 when I got the policy I had, and it was quite reasonable — just a few dollars per month.Shop around: Talk to a range of insurers to see what kind of deal you can get on a policy. Some life insurance companies make it easy to get quotes on their websites.Make yourself more insurable, if you can: For example, if you’re a smoker, consider stopping — you’ll save on life insurance, save money, and likely live longer.

Life insurance isn’t necessarily appropriate for every person in every situation — but it absolutely pays to get the best deal on it you can, if it’s necessary for you.

Our picks for best life insurance companies

Life insurance is essential if you have people depending on you. We’ve combed through the options and developed a best-in-class list for life insurance coverage. This guide will help you find the best life insurance companies and the right type of policy for your needs. Read our free review today.

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