I'm 40 Years Old and Still Don't Have Life Insurance. Here's Why

Life insurance is an important part of many people's financial puzzle. It's intended to soften the blow of losing a loved one -- it can't replace the person, but receiving a policy payout can make it easier for the people left behind to pay the bills, cover remaining debts, and adjust to life with a new financial reality.

I just turned 40 a few months ago, and it feels like a serious age. It's also come with some big money moves -- for example, I'm buying a house for myself this year. You might expect a 40-year-old to also have life insurance. But while I used to have a policy, I don't now. Here's why.

I used to have a term life policy

I had a life insurance policy for a couple years, but it was when my life circumstances were different -- namely, I was married. When I combined auto insurance with my ex, I also signed up for a low-cost term life insurance policy, to protect my spouse in case I passed away.

I hung onto this policy until a year after we split up, and I didn't take the time to change the policy beneficiary (don't do this -- if you get divorced, remove your ex from your life insurance policy ASAP). Then, when COVID-19 hit in 2020, I went looking for ways to save money when I was faced with losing my income (my old career wasn't pandemic-friendly). At that point, I canceled the old term life policy, and didn't replace it.

Here's why I no longer have life insurance

These days, I am without life insurance for a big reason. I'm not single, but my finances are. This means that my money is independent -- I pay all my own bills, I don't live with any other people, and no one is depending on my income to get by. I do have pets, however -- three adopted cats who are the best companions in the world.

While I could get a life insurance policy for the express purpose of providing for their care in the event of my untimely demise, I haven't done so. Instead, I named them in my will and any money I leave behind will go to pay for their care (after satisfying any other expenses). I also lined up someone to care for them, as well as a back-up choice, just in case. I hope the cats remain with me for the entirety of their lives, but no one can see the future. That's why we plan -- and sometimes buy life insurance.

How can you save on life insurance?

Just because I don't need life insurance doesn't mean you don't -- unless, of course, you are like me and are without human dependents. If you've reached the ripe old age of 40 and have a spouse, children, or both, the odds are good you should have a life insurance policy. People are likely reliant on your income -- and even if you don't have one, you likely take care of a home or children (or both). Here are a few tips to find and save on life insurance coverage:

• Lean on term life: Whole life insurance is expensive, because it'll cover you for your whole life. But what are the odds you'll need life insurance for your entire life? Instead, consider a term life policy that covers you for long enough to pay off your home or see your kids head off to college.
• Start early: The younger you are when you get a life insurance policy, the cheaper it is likely to be. I was just 30 when I got the policy I had, and it was quite reasonable -- just a few dollars per month.
• Shop around: Talk to a range of insurers to see what kind of deal you can get on a policy. Some life insurance companies make it easy to get quotes on their websites.
• Make yourself more insurable, if you can: For example, if you're a smoker, consider stopping -- you'll save on life insurance, save money, and likely live longer.

Life insurance isn't necessarily appropriate for every person in every situation -- but it absolutely pays to get the best deal on it you can, if it's necessary for you.