Do You Need Life Insurance If You’re Single?

We’re living through some tough times. Climate change, social strife, financial uncertainty. Perhaps you’re so busy just getting through life you can’t fathom a future past next week. Or maybe you have been considering your future and life insurance is part of those musings.

But do you really need life insurance as a single person? It depends. You need it if you have people who depend on you financially or think you will in the future. A life insurance policy gives them financial comfort should they lose you.

A couple of tips if you are providing financial support for your family and shopping for term life insurance quotes online:

Be mindful of how you answer the questions associated with the online life insurance calculator. Treat the children you provide for as if they were your own and treat elderly family members under your care as beneficiaries. You can name more than one beneficiary on your policy.

For What Other Reasons Do I Need Life Insurance?

1.      Life insurance is a reasonable solution for single people carrying debt either alone or with another. Should you die before it’s paid off, your co-signer will have to pay all of it.

Student debt is the biggest culprit, especially if you took out a private loan. It’s a bit less dire if you opted for a federal student loan because they’re discharged upon the debtor’s death.

Other types of debts to consider with or without a co-signer:

• a mortgage
• a car loan
• credit cards
• business loans. Many banks require life insurance before they approve a business loan. And they require you to name the lender as your insurance beneficiary. Even if your bank waives this requirement, a life insurance policy payout buys time for your partner to figure out next steps in the event you die before the business closes and helps pay any accrued business debts.

 

2.      Your health. Are you healthy and plan to stay that way? Are there hereditary health conditions that run in your family that may crop up in your own life later?

If you anticipate health problems as you age, life insurance may make sense. Term life insurance policies can be converted to a permanent policy without having to submit to a medical exam that can prevent you from qualifying for whole life or other permanent policies down the line.

3.      Burial expenses. Do you want to avoid having your family foot the bill for your funeral?

Funerals currently hover around $7,000. The Insurance you receive from your job may cover these expenses. However, if there are medical costs involved, you may want extra insurance to cover those costs. Your family wants to remember you. Not your debt.

4.      Legacy. Perhaps you want to leave a bit of money to your favorite charity or set up a scholarship fund in your name. You can assign that nonprofit as a beneficiary. (Remember, you can assign more than one beneficiary to a single policy.)

So, What Type of Life Insurance Do I Need?

A term life policy is the best option if you’re single. It’s inexpensive and you decide for how long you want coverage. If you want to convert it to a permanent policy later you can do so with no medical exam and have the opportunity to invest part of your premium to accrue cash value. This is particularly useful if you anticipate future health challenges.

Permanent Insurance provides life coverage and accrues cash value. You can use permanent life insurance as an investment and use the cash value for things like home purchases, college expenses or to fund your retirement.

If you’re healthy, financially independent, and debt-free, you may not need life insurance while you’re single. A life insurance quote for the best term insurance rates from an online calculator is free. It can’t hurt.