Final answer:
The need for life insurance, even without dependents, 3) depends on one's individual financial situation and goals. Life insurance can cover debts, end-of-life expenses, leave a legacy, or even contribute towards retirement funds through its cash value component.
Step-by-step explanation:
When considering whether you need life insurance even if you don't have dependents, the most accurate response is 3) It depends on your individual financial situation and goals.
Life insurance is not solely for providing for dependents, but can play a role in a broader financial strategy.
For instance, life insurance can be a way to ensure that your debts are covered, to provide funds for end-of-life expenses, or to leave a legacy to a charity or other cause you care about.
Additionally, certain types of life insurance, such as cash-value or whole life insurance, feature a savings component that can be borrowed against, offering a potential source of funds during your lifetime.
It's also notable that life insurance can play into planning for retirement.
Individuals who are saving for old age have various options, such as investments in stocks or bonds, savings accounts, and purchasing annuities.
The accumulated cash value in some life insurance policies can similarly be used to support retirement living expenses under certain conditions.
Ultimately, the decision to purchase life insurance should be based on a careful consideration of your current and future financial needs and objectives, and may benefit from discussing with a financial advisor or insurance expert.