Many people ask themselves the question “do I need life insurance?” It’s a good question, as buying life insurance is not a simple purchase.

To answer the question, consider is your situation in life. If you are single, have no children, and there is no one who is financially dependent on you, then you could possibly get away with not having any life insurance at all. However, you may want to by a small policy that will cover funeral expenses, medical bills and similar expenses could be wise. Life insurance pays out immediately after the death of the insured person, so this money will be available to whoever is making your final arrangements. This is different from money you have left in your estate. Whoever inherits that will have to wait until your will goes through probate, so in the meantime, they’ll have to come up with the money to pay for your funeral. Having a life insurance policy will eliminate that problem. For many single people, the life insurance benefits they receive through their employer are usually enough coverage.

If you are married and have children or thinking about having children, then the situation is much different. The point of life insurance is to make sure the children and surviving spouse are financially protected if you die. So think about it: how will the mortgage and other bills be paid, how will the kids’ education be paid for, what will your family live on? These are the key factors to consider when asking yourself that question ““do I need life insurance?”

Also, if one spouse is not working outside the home, make sure you consider a life insurance policy for her. Housecleaning and other domestic help, not to mention child care, can be costly, and the surviving spouse will need most likely need to pay someone to take on these tasks.

For a married couple who both work and have no children or other financial dependents, then the question “do I need life insurance” boils down to one issue. If both partners would be content living on their own income if the other spouse died, then there would be no need for life insurance. If, however, one spouse’s income was significantly greater than the other’s, then a life insurance policy might be a wise choice. A small policy to cover funeral expenses might also be something to consider.

Elderly people whose children are grown and no longer financially dependent have some flexibility when considering life insurance policies. There are few reasons you would need life insurance. Covering funeral expenses is one. Some wealthy people use life insurance as an estate planning strategy. Know that premiums for life insurance for elderly people can be very expensive. Before buying life insurance for any reason, take the time to consult an estate planner or financial advisor about your options. Don’t just go on the word of the person trying to sell the insurance.

While most people have one form of life insurance or another, make sure you know the answer to the question “do I need life insurance?” before you buy.