Who Actually Needs Life Insurance
Life insurance exists to replace your income for people who depend on it — your spouse, children, or anyone else who would face financial hardship if you died. If no one depends on your income, you likely don't need life insurance. If people do depend on your income, the question becomes how much.
You probably need life insurance if:
- You have a spouse or partner who would struggle financially without your income
- You have children
- You have significant shared debt (mortgage, car loan) that a surviving partner couldn't service alone
- You provide care for a parent or other dependent
Term Life vs. Whole Life: The Simple Version
| Term Life | Whole Life | |
|---|---|---|
| Coverage duration | Fixed period (10, 20, 30 years) | Your entire life |
| Monthly cost | Low ($20–$60/month typical for healthy 30-40 year old) | Much higher (5–10x+ term) |
| Cash value | None | Builds over time |
| Best for | Most people — income replacement while dependents need it | Specific estate planning needs; generally oversold |
How Much Coverage Do You Need?
A common starting point: 10–12x your annual income. On a $60,000 salary, that's $600,000–$720,000 in coverage. Refine based on:
- How many years of income your dependents would need (until kids are grown, until spouse can reach retirement savings)
- Your outstanding debt (mortgage balance, car loans)
- How much savings you already have (savings reduce the gap)
- Whether a surviving spouse works and earns income
Your KC Employer Coverage Is a Starting Point, Not a Plan
KC provides basic life insurance (typically 1x annual salary) at no cost. This is a benefit — but 1x salary is rarely enough for families with dependents and a mortgage. Open enrollment often lets you purchase supplemental coverage, sometimes without medical underwriting. If you have dependents, take that opportunity seriously.
Employer life insurance is also not portable — if you leave KC, the coverage ends. A personal term policy you own follows you regardless of employer.