Need life insurance if you don't have loans or dependants?

A Value Research reader recently asked us: "Do I need life insurance if there are no financial liabilities, or if my portfolio already covers them?" It's a valid question, and one that more financially aware individuals are starting to ask. After all, insurance is often purchased early in one's career, when responsibilities are high and savings are limited. But does it still serve a purpose once you've built financial independence? Why life insurance exists in the first place Life insurance is not meant to be a lifelong financial product. Its purpose is to protect your dependants in case you're no longer around to support them financially. In short, it is a tool to substitute your income when your wealth hasn't yet grown large enough to do so. So, if your investments can't yet fund your family's future, life insurance steps in to fill the gap. But once your portfolio is capable of covering that risk, the original need for the policy fades. When you absolutely need life insurance You likely need life insurance if: You have people financially dependent on your income, such as children, a spouse or ageing parents. Y

This article was originally published on May 27, 2025.