6 Types of People Who Need Life Insurance

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

Life insurance is not just for the wealthy or the elderly—it's a cornerstone of financial security for anyone with financial responsibilities or loved ones who depend on them. Whether you're raising a family, running a business, or carrying student debt, life insurance can provide critical financial protection when your loved ones need it most. In today’s post, we highlight six key groups of people who should seriously consider incorporating life insurance into their financial strategy.

1. Parents

If you have children who rely on you for emotional and financial support, life insurance is essential. It ensures that your family can maintain their quality of life if something were to happen to you. Life insurance can cover future education costs, daily living expenses, and even help your spouse continue providing for the family without the added financial burden.

2. Single Mothers

Single mothers often carry the full weight of their household’s finances. Life insurance can act as a financial safety net to protect your children’s future. A properly structured policy—especially one like an Indexed Universal Life (IUL)—can provide both a death benefit and a living benefit through cash value accumulation.

3. Students

Yes, even students may need life insurance. If you’ve taken out private student loans that a cosigner—like a parent—is legally responsible for, a life insurance policy can relieve them of that debt if you pass away. Additionally, locking in a low-cost policy while you're young and healthy can be a savvy long-term financial move.

4. Business Owners

As a business owner, your life insurance plan should be part of a broader tax and succession strategy. Life insurance can fund buy-sell agreements, cover business debts, and ensure the continuation of your company. Business owners can also explore using policies to build cash value that serves as working capital or tax-advantaged retirement income.

5. Caretakers

If you're a caregiver—whether to aging parents, a sibling, or a child with special needs—life insurance can help secure their future care. Special needs planning often involves permanent insurance options that ensure continued financial support even after you’re gone.

6. People With Mortgages

If you’ve taken on a mortgage, life insurance ensures that your loved ones won’t be left scrambling to cover housing costs. Term insurance is often a great fit here, providing coverage during the life of the mortgage, while permanent insurance can offer long-term benefits and cash value growth.

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About the Author

Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 Disclosure:
This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.