Who is most likely to have a higher need for life insurance?

The need for life insurance is closely linked to financial responsibilities, particularly regarding dependents. Wage earners with dependents, such as children or spouses who rely on their income for support, have a significant need for life insurance. In the event of the wage earner's death, life insurance can provide financial security for those dependents, helping to cover everyday living expenses, education costs, and any other financial obligations that they may face without the insured's income.

In contrast, individuals with no dependents generally do not require life insurance to the same extent, as there is no one relying on their income for financial support. Similarly, owning multiple cars does not inherently create a need for life insurance, nor does having no debts; while both scenarios may involve responsible financial planning, they do not directly relate to the necessity of providing for dependents in the event of a wage earner's death. This context underscores why wage earners with dependents are most likely to have a higher need for life insurance.