5. You’re a stay at home parent.
If you’re a stay at home parent to look after the children and run the household while your partner goes to work, you too need a life insurance, because once you’re no longer around all of the work you used to do around the house will need to be done by someone else. A life insurance payout can help to pay for things such as childcare, a nanny, etc.
6. You and your spouse have small or no assets.
You may need life insurance if you and your spouse have zero or very little asset or passive income streams to independently care for yourselves in the event that one of you dies.
For example, let’s say you’re a lawyer or a doctor earning a high income, say $200,000 a year. But you have no passive income streams or assets, but only depend on your paycheck to support your family. If you die, the paycheck stops coming. Your family may face financial burden without your paycheck.
Now, let’s say you own a hotel or an apartment building and collecting rent monthly, money will still come in even if you are gone. The lawyer/doctor actively trades their time for a paycheck, while the business owner earns his or her income passively.
So, if you’re actively trade your time for a paycheck with no other assets, you should definitely carry life insurance.