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A life insurance policy is a contract designed to pay out money to people you love — known as beneficiaries — in the event that you die. That money, which typically gets paid out within 14 to 60 days, can help your surviving crew pay bills, student loans, childcare, mortgage, property taxes, rent, and so on. “The money that can come through the payout of a life insurance policy can help them weather what is in store for them for life,” Dina Megretskaia, a principal and wealth manager at Modera Wealth Management, tells Vox. Simply put, the smartest time to get life insurance is when you have dependents of any kind, says Nathan Astle, a financial therapist with Financial Therapy Clinical Institute. What is a dependent? Really anyone who relies on you financially. This doesn’t solely mean people who rely on your income; they may depend on your “unpaid” services, too, such as caregiving. “It’s more flexible than you might think,” says Megretskaia. Most obviously, dependents are your spouse or children, but may also include siblings, chosen family, friends, even parents you planned on caring for one day. “These are people who would be struggling if you did die,” says Astle. You get to determine who your dependents are. If you don’t have dependents, life insurance is not as important. As Astle told me, “realistically, there are only so many things you can spend your money on.” https://www.vox.com/advice/482049/do-i-need-life-insurance