1. False is correct. If you have no dependents, the only life insurance you’ll probably need is enough to pay off your debts and funeral arrangements. If you have dependents, you might also have resources, such as Social Security survivors’ benefits or life insurance through your employer, that take the place of individual life insurance policies. Two 40-year-olds, each earning exactly the same amount, might need vastly different amounts of life insurance. One, with a working spouse, no children and substantial savings, may need relatively little. The other, with a dependent aging parent along with several young children, may need far more. Look carefully at your specific situation before you decide how much to buy.