Asked by Clarissa  |  Submitted November 09, 2015

I do not have life insurance through my work because I make so little and I need to keep my whole check. Is this detrimental to my future?

Report Question Report

  Leave Answer

Sign in to MoneyTips
By submitting you agree to our Terms of Service

  Answers  |  2

November 10, 2015

Are you a single mother raising children on your own? If yes, then you NEED life Insurance. Said differently, you ONLY need life insurance if you have children that depend upon you and would be “financially screwed” if something happened to you. Yes, financially screwed is a technical term.

I can understand that it is difficult to be in a situation where you need your entire paycheck. However, even a small amount of life insurance can go a long way and you have a responsibility to your child/children.

You should definitely use the group term insurance available through your work unless you change jobs frequently. If you change jobs frequently then you should look into a small level term product (choosing the number of years to match when your youngest child reaches age 18.)

If you do not have children, there really isn’t any need for life insurance in your situation.

I hope this helps. I would be happy to answer any follow up questions you may have regarding how to select the right term insurance option (as cash value insurance isn’t appropriate for you until you earn enough to save for retirement.)
Brad Creger


Clarissa | 11.11.15 @ 15:40

No I do not have children. This was very helpful! Thank you!

$commenter.renderDisplayableName() | 09.21.20 @ 00:42


March 03, 2016

Honestly, yes. Is there a way to start saving something, anything for down the road or emergencies? Even a little bit is a start. Insurance should be part of your plan, but start a plan first. Find a way to set something aside.

$commenter.renderDisplayableName() | 09.21.20 @ 00:42