There are many questions involved in a lifelong partnership. What will our life look like? Should we buy a home? Do we want to get married and how will it affect our finances? Kids or no kids?
For child-free couples, life insurance may not even be on your list. After all, it’s often seen as something for people with kids or dependents. But the reality is far more nuanced, especially when you consider what life you and your partner have built together and what you’d want to protect if one of you were gone.
Life insurance can offer peace of mind and a sense of security to couples, regardless of if they have dependents or not.
So how do you know if it’s the right fit for you? Let’s walk through some questions to help you decide whether life insurance belongs in your financial plan, even without children in the picture.
Would one of us struggle financially without the other’s income?
Budgeting can be stressful, even at the best of times, but can sometimes be especially difficult after the loss of a life partner.
Life insurance can help a surviving partner maintain their standard of living without their partner’s income. This is particularly important if you and your partner have very different income levels. Life insurance can provide financial support, helping to ease the transition for the survivor during a difficult time.
If this is your primary reason for purchasing a policy, consider purchasing coverage that is enough to replace the covered partner’s contribution to the survivor’s basic needs like rent, utilities, groceries, transportation and also the things that bring them joy throughout their lifetime.
Do we share debt that one of us would be left with?
You and your partner are a team and it’s easier to tackle things like debt together. Having a life insurance policy means you can still help your partner with financial challenges after you pass away.
A life insurance policy can cover shared debts that you have been working on paying off together—such as mortgages, car loans, student loans, or credit card debt. This can help reduce the debt burden from the surviving partner during an already difficult time. And it can also help prevent worst case scenarios like forced asset sales, home foreclosures, and bankruptcy.
If freedom from debt is your primary motivation, consider coverage that is enough to pay off all debt.
Would losing my partner impact our business?
If your partner supports your business operations in any way, it’s important to consider the business implications of losing them. Are they the face of your business and its personality? Do they have an irreplaceable skillset? Would you need to hire someone at a higher rate of pay?
Life insurance can cover business related debts, offer a payout to replace lost business income, or provide enough funds to hire a new employee. Speak with a life insurance agent about whether personal or business-specific coverage is most appropriate for your circumstances.
Do health challenges or a disability affect our financial security?
If you or your partner has a disability that interferes with work or may do so in the future, life insurance is particularly important for financial security. A policy can help make sure that your loved one isn’t left navigating both grief and the burden of complex medical or care-related expenses alone.
It’s important to think beyond just replacing income. The right coverage can also help support the cost of long-term caregiving, home modifications, specialized equipment, and ongoing medical treatments.
These are expenses that can quickly add up and become overwhelming without a second income or external support.
If you currently receive care or provide care for your partner, ask yourself: Could we maintain this level of support without one another? Life insurance can offer a way to protect that continuity, helping to make sure your partner can continue to access the care, dignity, and quality of life you would want for them.
You may also want to consult with a financial planner who has experience navigating disability-related planning to help you assess your needs and build a policy that aligns with your long-term goals.
Are others depending on us for care or support?
No kids doesn’t mean no one is counting on you. Many couples have decided together that they will care for each other’s aging parents or special-needs family members. Having a life insurance policy in place prevents the surviving partner from shouldering these needs alone.
It also helps ensure that your loved ones will be cared for in the way you intend. While your partner may have every intention to keep promises to care for your loved ones if you pass away—we often see that circumstances change after a loss. In some cases, family conflict arises during grief that causes a partner to change their mind. Even a partner with the best intentions may remarry and have new financial obligations or priorities that prevent them from meeting the promises they originally made.
Having a life insurance policy with the intended recipient as the beneficiary can bring peace of mind that your wishes will be followed and prevents the guilt of a surviving partner who finds themselves unable to keep promises.
How would we cope emotionally and financially after loss?
I know it’s a terrible thing to imagine, but what would you need if your partner passed away tomorrow?
Are you someone who would throw yourself into work or would you need to take time away? Would you want to go back to school? Would you attend meditation retreats? Hire the best therapist in the country? For example, personally, I think I’d need to step away from work for an Eat, Pray, Love trip or a Cheryl Strayed-style backpacking journey.
Grieving is personal and unpredictable. Whether you’d need time off work, therapy, travel, or just space, life insurance can give your partner the financial room to cope in the way they need.
To provide this peace of mind, purchase enough coverage not just for basic needs but enough for the additional expenses of taking time away from work and engaging in healing activities.
Term vs. Whole Life: What type of life insurance makes sense for us?
So by now, maybe you’ve determined you do want to consider getting life insurance, but what type?
There are two main types of life insurance—term and whole life. Term insurance covers you for a specific period of time, like 10, 20, or 30 years. Whole life insurance covers you throughout your lifetime. Since permanent coverage will eventually pay out, it often costs more.
In most cases, term insurance is the best choice for a child-free couple. It allows you to get more coverage for less premium. If you purchase a term policy, it’s common to purchase one that lasts through your working years. This assumes that by the time you retire, you have saved and invested enough to support you and your partner so that a life insurance policy is no longer needed.
However, there are some cases in which you may want to consider whole life insurance. If you would like a policy in place to ensure care for aging parents or special needs loved-ones, consulting with a special-needs planner can help you determine if a permanent policy is the more appropriate choice.
It’s common for life insurance agents to encourage the purchase of whole life insurance even when a term policy may be more appropriate. This is in part because whole life policies pay a higher commission than term. With this in mind, it’s important to be clear and firm about your wishes when speaking with an insurance agent and to seek coverage elsewhere if it seems like a whole life policy is being recommended without a clear reason that aligns with your goals. It can help to learn more about life insurance so that you go in feeling equipped.
How much life insurance is enough?
Unfortunately, I have to use everyone’s least favorite response, “it depends”. Every couple’s financial situation is unique. One commonly used rule of thumb is 10 times 1 year of your income, but it’s important to make sure that the amount you choose covers the costs you intend it to cover, plus some extra from the unexpected.
A financial advisor can also help you model worst-case scenarios to determine an amount that’s right for you. They can also help you to connect with a trusted independent life insurance broker who can offer coverage that fits your needs. Going to an insurance professional with a clearly outlined set of goals can help to determine the appropriate amount for your circumstances.
What do we want to protect and how?
Living child-free can lead to a whole world of new questions and possibilities. Without children to consider, the choice to purchase life insurance may not be as clear. However, life insurance isn’t just about protecting the next generation, it’s about protecting the life you’ve built together and the plans that matter to you both.
At its core, life insurance is about protecting what matters most—your partner, your plans, and your peace of mind. Whether or not you have children, that’s worth considering.
Ultimately, the question isn’t “Should we have life insurance because we don’t have kids?” It’s “What matters most to us, and how can we protect it?”
