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Putting it simply, if someone depends on you financially, you need life insurance. That being said, situations vary, and therefore there are varying degrees of dependency.

At Hagaman Insurance Group we try to break it into a few overarching cases (although we understand this doesn’t account for every possible situation) to help simplify the process a bit for our customers. The first category I am going to touch on with my Life Insurance and Who Needs It breakdowns are customers with family obligations.

While that can be broad, here are a few of the ways we break down family obligations building a plan specifically for those commitments.

No Children

The first ‘No Children’ category is a lot how it sounds. That being said many insurance professionals assume that if there are no children, there are no dependents which is not true. The no children category is for couples who share financial obligations. As Maurie Backman says in her article on The Motley Fool, “Sure, your spouse might have a means of earning a living, but what if you bought a house together under the assumption that you’d both be making money to pay the mortgage? If you pass, your spouse might struggle to keep up with those payments.” This is why it is imperative for each spouse to have their own policy. In case of death, your spouse is then protected and will continue to have shared expenses.

The ‘No Children’ category also doesn’t exclude couples considering children down the road. In fact – it protects many couples from insurance rate spikes as a result of pregnancy since it can be associated with particular health risks.


The obvious next category we use is ‘Children.’ In this case, it’s important that in addition to your spouse, you need to protect your children are also protected. Considering their financial needs like maintaining the lifestyle they are used to, college tuition and marriage, it’s essential that everyone is protected in case of a tragedy.

Single Parent

This one is a bit more obvious, but single parents are often the monetary lifeline to the entire family. Since they serve a vital role in the family, a life insurance policy will at least alleviate some of the financial burden in the case of loss.

Stay-At-Home Parent

Stay-at-home parents’ can go unnoticed, but in reality, their contributions eliminate a lot of financial burden for their families. The cost of childcare, cleaning, and transportation add up fast when you are paying for it five days a week, and that doesn’t even include the weekend and evening coverage stay-at-home parents provide. The point is that when you are evaluating coverage options, make sure your policy can account for all the services you provide to your family.