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“Do I Need Life Insurance?” A 6-Question Quiz to Help You Decide

lifeinsuranceDo I need life insurance? You may have heard friends, coworkers, or family talk about it and wondered this very question. The truth is: some people don’t need coverage at all while others need only a little. But for those who have a young family or who worry about bills left unpaid if they die, life insurance can help you ensure that your family is protected from financial hardship.

Answer the 6 quiz questions below to find out if you should be considering life insurance. Add up your points from each question to find out your total score and see where you land.

The Life Insurance Quiz

  1. How many people are dependent upon your earning capacity? (Add up all that apply.)
  • No one. 0 Points.
  • An aging relative. 1 Point.
  • My spouse. 2 Points.
  • My children. 3 Points.
  1. Besides life insurance, what other monetary resources would your dependents have access to? (Add up all that apply.)
  • No dependents. 0 Points.
  • Inherited property of significant value. 0 Points.
  • Assistance from affluent extended family members. 1 Point.
  • Inherited property of moderate value. 2 Points.
  • Social security or union and workplace pensions. 2 Points.
  • Inherited property of modest value. 3 Points.
  • Few existing resources. 3 Points.
  1. How old are your children? (Add up all that apply.)
  • No children. 0 Points.
  • Grown and living independently. 0 Points.
  • In college. 1 Point.
  • In high school with plans for college. 2 Points.
  • In grade school. 3 Points.
  • Very young children. 3 Points.
  1. Which of these assets will be available to your dependents for their immediate financial needs?
  • Joint bank account. 0 Points.
  • Joint tenancy stock portfolio. 1 Points.
  • Pay-on-death bank account or beneficiary portfolio assets. 2 Points.
  • None of these. 3 Points.
  1. How Much of Your Property and Assets Will Need to Be Transferred to Your Heirs Through a Will in Probate Court?
  • Your assets are all held in bank accounts, securities, or other easily transferred cash assets. 0 Points.
  • You have some cash assets and some property instructions in your will. 1 Point.
  • You have property assets, trusts, or detailed instructions in your will. 2 Points.
  • Your affairs are complex, so many of your assets are addressed in your will. 3 Points.
  1. Will Your Estate Owe Any Taxes or Debts? If So, Where Will the Money Come From to Pay It?
  • No, probably not. You don’t own real estate and your savings is less than 7 figures.
    0 Points.
  • Not Likely. You have most of your savings in bank accounts and securities. 1 Point.
  • Possibly. You own some real estate or shares in a small business. 2 Points.
  • Probably. You own real estate, collectibles, and a stake in a small business. 3 Points.

What Your Score Says About Your Possible Insurance Needs

A Score of Less than 6

It’s true: not everyone needs life insurance. A low points score like this suggests that you likely have few if any dependents, or, a healthy amount of shared liquid assets available should the need arise. You may not need additional financial protection in your current situation. But keep in mind that if your family grows or your financial situation changes, it might be time to revisit the question.

A Score of 6 to 12

If you ended up with a score in this range, you probably have a couple dependents who could need access to short-term cash if you died unexpectedly. If significant assets will be transferred to your dependents by a will, life insurance coverage could be a good solution to help their financial situation in the interim. There are different levels of insurance, so talk to a broker to find out what level of coverage makes a good match for your current circumstances.

A Score of More than 12

If you scored in the high range, it’s a good indicator that you have a young family that depends on you. It’s possible you may not have had the time to build up a savings nest egg. For such situations, life insurance could be a very wise investment. You’ll gain peace of mind knowing your family’s future financial security is protected.


Hopefully you enjoyed this short quiz and learned something about the factors that can indicate if and when you may need additional life insurance.

Often life insurance isn’t a simple yes or no question, because many factors can affect how much and what type of coverage you need. And major life changes can quickly change your coverage needs, so it’s not a one-size-fits-all solution.

Remember: there are a number of options available, so look for one to fit your family’s particular needs. Talk to your insurance broker. They can help you evaluate your needs more thoroughly and explain your coverage options.