1. Don’t buy life insurance if you do not need it. The purpose of life insurance coverage is always to replace your income if you die before accumulating sufficient resources to make life insurance unnecessary. So, for those who have someone dependent upon you to earn some earnings during a period of time, life insurance could be the way to go. On the other hand, if you are single without any loved ones or even retired and living on investments or even retirement income, you probably don’t need life insurance coverage.