Do I need life insurance if I don’t have kids or a mortgage?

“I don’t have children.”

“I’m not paying a mortgage.”

“So… Do I really need life insurance?”

These are common thoughts. And if you have the same questions in mind, you’re not alone. But here’s the truth—life insurance isn’t just for parents or homeowners. It can be useful for many different situations, which you will get to know in this blog.

Why You Need Life Insurance Without Kids or a House?

1. Do You Have Anyone Who Depends on You Financially?

Even if you don’t have children, someone else might rely on you, like:

Elderly parents
A younger sibling
A life partner

If yes, life insurance can help them stay financially secure if something happens to you.

2. Would Your Funeral Be a Burden?

In British Columbia, the average funeral costs between $5,000–$15,000. Would your loved ones have that kind of money ready? Life insurance can help pay for funeral expenses, so your loved ones won’t have to cover the cost themselves.

3. Do You Have Any Debt?

Think about:

Student loans (especially private ones)
Credit card debt
Car loans

If someone co-signed your loan, they might still have to pay it if you’re gone. A small life insurance policy can protect them.

4. Are You Planning for the Future?

Even if life insurance doesn’t seem necessary right now, buying it early comes with several advantages, like:

Lower cost (younger means cheaper)
Lock in a good rate
Build cash value if it’s a permanent policy

Buying life insurance is like planting a tree. You don’t need the shade today, but one day, you will.

7 Real Reasons to Buy Life Insurance

You want to Help Your Parents: Maybe they paid for your college or helped you with rent. Your life insurance policy can be a way to give back.
You want to Cover Your Final Expenses: Death is hard enough. Don’t leave others worrying about the cost.
You Have Shared Debts: Shared credit cards, car payments, or co-signed loans don’t vanish when you do.
You Want to Leave a Legacy: Do you wish to support a charity or cause that matters to you? Life insurance can make that possible.
You Might Have Kids Later: Buying a policy now while you’re young and healthy means you’re covered when that day comes.
You’re Starting a Business: If you own a small business in BC, life insurance can protect your business partner or employees.
You Just Want Peace of Mind: No guessing. No “what ifs.” Life insurance takes one worry off your plate.

5 Signs You Don’t Need Life Insurance Right Now

Let’s be fair. Some people truly don’t need it at this moment. You might choose to hold off on getting it (for now) if:

You have no dependents
You have no debt
You have money saved to cover funeral costs
You’re older, and it’s too expensive
You have better investment options

Still, many Canadians like the financial security that life insurance gives. It’s not always about immediate necessity; often, it’s about making wise monetary decisions for the future.

5 Common Myths About Life Insurance

Myth	Truth
Myth 1: Life insurance is meant only for people who have children.	Life insurance can help anyone who has someone depending on them, even if it’s a parent, sibling, partner, or business partner. For example, someone helping pay rent with a roommate might want coverage so the other person isn’t left struggling.
Myth 2: Life insurance is too expensive.	Many term policies cost less than $1 a day, especially if you’re young and healthy. In British Columbia, a 30-year-old non-smoker can often get $100,000 of coverage for about $12/month. That’s less than most monthly subscriptions.
Myth 3: I can always buy it later.	You might not qualify later if your health changes. Plus, premiums go up with age. For instance, someone buying at 25 may pay half the rate compared to waiting until 40—if they’re still eligible.
Myth 4: I’m covered by my employer’s insurance, so I don’t need additional life insurance.	Workplace insurance is often limited and may not follow you if you change jobs. Example: If your job offers only $25,000 in life coverage and you pass away unexpectedly, that amount might not even cover funeral costs. It’s smart to have a personal policy, too.
Myth 5: I’m young and healthy, so I don’t need life insurance.	The truth is, being young and healthy is the ideal time to get life insurance. You’ll pay lower premiums and have a better chance of being approved without any issues. Think of it like locking in a discount for future peace of mind. Plus, accidents and unexpected illnesses can happen to anyone at any age.

Types of Life Insurance You Should Know

There are three main types of life insurance in Canada. Each type functions in its own way, based on your personal needs and financial goals.

1. Term Life Insurance

Covers you for a set number of years (like 10, 20, or 30 years).
Lower cost compared to permanent insurance.
Good if you need coverage for a certain time (like until you finish paying off debt or reach retirement).
Does not build cash value—protection stops when the term expires.

Example: Aman, 29, lives in a rented apartment in Burnaby. He doesn’t have kids yet, but wants to make sure his parents won’t struggle with costs if something happens. He gets a 20-year term policy for $100,000 and pays $13 per month.

2. Permanent Life Insurance

Provides lifelong coverage, as long as you continue making your premium payments.
More expensive than term insurance.
Builds cash value that you can borrow or use later.
Often used for long-term financial planning.

Example: Gurpreet, 42, owns a small retail shop in Burnaby. She wants to leave money for her two nieces and also help cover final expenses. She chooses a whole life insurance plan that gradually accumulates cash value over the years.

3. Universal Life Insurance

A flexible type of permanent life insurance.
Let you change your payments and adjust the coverage.
Has an investment option inside the policy that can grow over time.
Better suited for people who want both insurance and investment in one plan.

Example: Karandeep, 38, is a freelance web designer living in Burnaby. His income changes month to month, so he chooses a universal life policy where he can adjust premiums and also invest money in the policy when business is good.

How Much Coverage Should You Get?

Ask yourself:

How much debt do I have?
How much will a funeral cost?
Do I want to leave money behind?

A basic policy of $50,000 to $250,000 is often enough for people without big responsibilities. Talk to a licensed insurance broker in Burnaby, BC, who can help you figure it out.

5 Quick Questions to Help You Decide

Will someone suffer financially if I die suddenly?
Do I want to avoid leaving behind debt?
Am I thinking about starting a family someday?
Can I afford a small monthly payment right now?
Would I feel better knowing my final costs are covered?

If you answered “yes” to even one, life insurance might be worth considering.

Is Life Insurance Worth It?

Yes, even without kids or a mortgage, it can still be helpful. Think of it like a safety net you might never use… but if life takes a turn, you’ll be glad it’s there. It’s not about being scared of dying—it’s about caring for the people and plans you leave behind. And remember, there are many trusted insurance broker companies in Burnaby, BC, who can help you find the right plan for your life and budget.

Quick Recap

Life insurance isn’t just for parents or homeowners.
It is like a financial aid to your family when you are gone, and can help them with paying off debt and funeral costs.
It’s cheaper when you’re young and healthy.
You don’t need to get a big policy—just enough to protect what matters.
Peace of mind is priceless.

Ready to explore your life insurance options? If you’re curious but unsure, talk to a licensed insurance advisor in Burnaby, BC. Ask questions. Get a quote. Learn your options. Sometimes, life insurance isn’t just about others—it’s about you, too.