Do Single Adults Need Life Insurance?

Do Single Adults Need Life Insurance?

Mon, Feb 8, 2021 5:04 PM

Life Insurance

Many people wonder if life insurance is appropriate for single individuals.

It's easy to assume that the answer is "no." After all, if you were to pass away, the main objective of life insurance is to provide your family with cash. So, it seems reasonable to think that if a spouse or children are not relying on your earnings, you do not need life insurance.

There are definite occasions, though, when single people need life insurance. If you're flying solo, these are some of the most common reasons to seek life insurance.

 

You've individuals that count on you

 

Just because you're single doesn't mean that people don't rely on you either. Maybe you're a single parent with young kids. Or you've got aging parents or siblings with disabilities that rely on you. You almost definitely need some form of life insurance if someone counts on your income to make ends meet.

 

You own a small business

 

The financial institution that issues your business loan would require you to have life insurance in most situations. This is to ensure that if you die before the debt is paid off, they get their money back.

When you have a business partner, life insurance is also required. It's possible that your death will leave the company in a lurch. Fortunately, in the event of your untimely death, there is special insurance known as "key person" insurance that can help keep the business alive.

 

Life Insurance

 

You've got debt

 

A big explanation why single individuals require life insurance is not saddling others with debt. Usually, this is the case when your loan has a co-signer or when you share a mortgage with a friend, relative, or someone else.

Your co-signers can find private student loans particularly burdensome. That's because they are not discharged when you die, unlike federal loans. This could leave a co-signer on the hook for several thousands of dollars, like a parent. Shared mortgages could leave your fellow borrower in the same situation, too.

If you have debt like this, a simple and inexpensive option is to get term life insurance. If you were to pass away early, it will step in and pay off your portion of the loan.

 

You would like to pay for your final expenses

 

Did you know that it can easily cost more than $10,000 for a funeral?

For a decent funeral, a possible five-figure price tag is a major reason why individuals need life insurance. Your friends and family would be on the line without it to cover those expenses.

 

You want a legacy to leave

 

Another explanation why single people need life insurance is to leave money to a beloved school, religious group, charity, or individual. Any or all of the profits of the policy could help further a cause that is near and dear to your heart. If you want to donate money to someone you care for, it might also help someone achieve their dreams.

These scenarios illustrate why life insurance is required for single individuals. If someone resonates with you, by talking to an insurance agent about your choices, show yourself some love.

 

You want your wealth to grow

 

When you are not around, life insurance isn't just there to take care of things. When you have lifelong life insurance, it will also support you while you live.

Permanent life insurance provides you with a death payout or benefits while still, on a tax-deferred basis, collecting cash value. To raise your personal wealth or to buy a house, supplement your retirement income, cover an emergency bill, and more, you can use that accrued cash.

 

You want a legacy to leave

 

Another explanation why single people need life insurance is to leave money to a beloved school, religious group, charity, or individual. Any or all of the profits of the policy could help further a cause that is near and dear to your heart. If you want to donate money to someone you care for, it might also help someone achieve their dreams.

These scenarios illustrate why life insurance is required for single individuals. If someone resonates with you, by talking to an insurance agent about your choices, show yourself some love.

 

You want to lock up coverage when you're safe and young

 

If you get life insurance and how much you pay for it is affected by your health. Generally speaking, it's easier for younger people in better health to get life insurance. They typically pay less for it, too.

For these reasons, when you're young and safe, it is always a good idea to lock in coverage at an affordable rate. If you wait until you have a chronic problem, obtaining life insurance coverage can be hard (if not impossible) obtain. If you have a wife or kids dependent on you at the moment, this can be difficult news to swallow.

 

Let's estimate Life Insurance you need.

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Related Articles:

What to Do If You've Been Denied Life Insurance?

Things to Know About Getting Life Insurance for Your Children

 

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