3 Reasons DINKs Need Life Insurance—and Why It’s a Smart Move

For couples without children—often referred to as DINKs (Dual Income, No Kids)—life insurance, disability insurance, and long-term care coverage may not seem like immediate priorities. Without dependents, you might assume these financial tools aren’t as necessary. However, protecting your income, assets, and lifestyle is just as crucial, whether or not you have children or are legally married to your partner.

Here are three key reasons why insurance planning matters for DINKs and how the right strategies can provide financial security and flexibility for you and your partner.

1.      Disability Insurance: What Happens If One of You Can’t Work?

If you and your partner rely on two incomes, losing one due to an accident or illness could be a financial disaster. Even if you have disability insurance through work, it’s usually not enough to maintain your lifestyle.

• Most work DI policies cover less than 50% of your salary (and that’s before taxes) and they do not account for inflation.

• High earners are especially at risk—many policies cap benefits, leaving a major gap in income replacement. The more you earn, the smaller the percentage of income is covered by a work DI policy.

• Your expenses won’t stop—mortgage, rent, travel, dining out, and lifestyle costs don’t pause just because you’re unable to work. Plus, there may be additional unplanned expenses due to disability.

Things to Think About:

• If one of you becomes unable to work tomorrow, could the other fully cover all bills?

• Would you be willing to give up parts of your lifestyle to make up for lost income?

• Would your partner be okay taking on the financial burden alone?

• Do you have enough in savings to cover years of lost income?

Without DI, your partner may have to cover everything alone—or you’ll have to make drastic lifestyle cuts. An individual disability policy ensures you keep your financial independence if the unexpected happens.

2.      Long-Term Care Insurance: Who’s Taking Care of You Later?

Nobody likes thinking about getting older or needing care. But the reality is that nursing home and in-home care costs are projected to skyrocket over the next 15-20 years.

Who’s going to step in when you need care?

• The average cost of a room in a private nursing home is already over $100,000 per year—and rising.

• Without LTC insurance, care costs come out of your assets—or your partner’s.

• Often, family members take on the caregiving role, showing their generosity and love but taking on a lot of stress and potentially losing income.

• You can also buy LTC insurance for a parent to avoid you and your partner shouldering the financial and emotional burden later.

Things to Think About:

• If you needed daily care, who would provide it—your partner, a family member, or a paid caregiver?

• Do you have enough savings to cover long-term care costs without draining your assets?

• Would your partner or family be willing (or able) to take on caregiving responsibilities?

• If your parents needed care, could you afford to help them—and if you became their caregiver, can you afford to give up your job?

Planning now means you’re not draining your savings or putting stress on your loved ones when the time comes. A long-term care policy on yourself protects your loved ones and your assets when you need care. A long-term care policy on a family member, protects you and your assets when they need care.

3.      Life Insurance: More Than Just a Death Benefit

Life insurance isn’t just about leaving money to kids—it’s a flexible financial tool that can help you build wealth, protect your partner, and even boost your retirement savings.

Term Life Insurance:

• Covers short-term needs, such as mortgage or lease payments, ensuring that your partner isn’t left with financial burdens.

• Provides peace of mind during critical working years.

• Is a cost-effective way to plan for the unthinkable in the short term.

Permanent Life Insurance:

• Builds cash value that can be accessed tax-free and used for any purpose.

• Can act as a supplemental retirement planning tool once other savings vehicles, like 401(k)s and IRAs, are maxed out.

• Offers flexibility—funds can be allocated to various accounts based on your risk tolerance.

  • Indexed accounts: Provide market-linked growth with downside protection.

  • Variable accounts: Allow for uncapped market participation with downside risk.

  • Whole life: Offers guaranteed, non-correlated growth with stability.

• If the cash value is never used, the policy will still pay an income tax-free death benefit to your chosen beneficiary—whether it’s your partner, a parent, a sibling, a niece or nephew, or to whomever you choose.

Even without children, life insurance can be a powerful estate planning tool:

• Guarantees wealth transfers to loved ones exactly as you intend, avoiding probate delays.

• Supports nieces, nephews, or other family members who may benefit from an inheritance or to whom you would like to leave a gift.

• Enhances charitable giving—a policy with a charity as the beneficiary can significantly increase your gift in the future while offering tax benefits to you today.

Things to Think About:

• If something happened to you, could your partner afford to keep your home, pay off debts, and maintain their lifestyle?

• Do you want the option to use life insurance for tax-free retirement income or as another cash bucket in the future?

• Would you like to leave a financial gift to a family member or charity?

• Do you want to build cash in a tax-advantaged asset using various investment options?

The earlier you buy, the cheaper it is—and the more flexibility you’ll have.

When Should You Get Covered?

• In your 20s & 30s: Prioritize disability insurance and life insurance to protect your income and major financial commitments. Start including permanent insurance as your income and net worth grow.

• In your 40s+: Start long-term care planning and use permanent life insurance for tax-advantaged growth and future giving.

• At any stage: Regularly review your policies to ensure they still align with your financial goals. This conversation should not happen just once.

Final Thoughts

You don’t need kids to need insurance. Whether it’s protecting your income, securing your future, or building wealth, the right coverage keeps you and your partner financially independent—no matter what life throws at you.

And remember, insurance is always cheaper and easier to get when you’re younger and healthier. The sooner you lock it in, the better off you’ll be.

Ready to make sure you’re covered? Let’s start the conversation today.