What Happens To People With No Life Insurance? 
There is no law that makes you buy life insurance , so there is no penalty for not buying life insurance . However , even if you are on Medicaid , Social Security , or are a veteran , there is no fund that will pay for more than about 10 % of your final expense costs . If you do not have the money saved up to cover your expenses after you die , it is on your shoulders to take care of that through life insurance or other savings . Otherwise , it will be your family 's responsibility . 