isworthit

Is Life Insurance (Term) Worth It?

2026 data · Last updated 2026-07-05

The verdict

Yes if someone depends on your income — term life insurance is cheap and does one job well: replacing your income if you die while others rely on it. If no one depends on you financially, you likely don't need it.

The trade-off

Typical cost
20-year, $500,000 term policy averages ~$26/mo for a 40-year-old. Preferred healthy nonsmokers, $500k 20-yr term: ~$15-$18/mo at age 30, ~$23-$27/mo at age 40.
Typical saving / return
Pure protection: pays the death benefit (e.g. $500k) to beneficiaries if death occurs during the term. No cash value; premium is 'spent' if you outlive the term.
Breakeven
Not an investment — value is realized only on death during the term. Term is sized to cover a defined-need window (mortgage, child-rearing years).

What changes the answer

  • age at issue
  • smoking/nicotine status
  • health & risk class
  • coverage amount and term length

Pros & cons

Pros

  • Cheap protection for your income-earning years
  • Replaces income and covers debts for dependents
  • Simple and easy to compare (term)
  • Peace of mind for families
  • Lock in low rates while young and healthy

Cons

  • No payout or cash value if you outlive the term
  • Coverage ends when the term expires
  • Needs can change, requiring re-evaluation
  • Unnecessary if no one depends on your income

Who it's for

✓ A good fit if…

  • Parents and primary earners
  • Anyone with a mortgage or shared debt
  • People with financial dependents

✗ Probably not if…

  • Single people with no dependents or shared debt
  • Those with enough assets to self-insure

What people are actually asking

Real Reddit discussions on whether Life Insurance (Term) is worth it — titles link to the original threads.

FAQ

Is life insurance worth it?

If someone depends on your income, yes — term life insurance is inexpensive and replaces your income if you die during the years others rely on it. If no one depends on you financially, you probably don't need it.

Sources