Short answer: When the thought of getting life insurance comes up, you, along with many other people, may wonder if it’s necessary to get life insurance as a single person. Overall, in most cases, the answer will be yes, because even if you are single and healthy now, it’s hard to determine your situation in the future.

Why Is Life Insurance Important?

Life insurance is crucial because it will help your family or anyone close to you pay for your funeral if you were to die. Life insurance is also known as death benefit because your death benefit will not pay out until you die.

Life insurance is something that most people should want to get to help out their families in the future. Death and funerals can be expensive to pay for, especially if the death is unexpected, so having life insurance set up is the best way to make things easier for your family if you were to die.

Expect The Unexpected

Life insurance offers you and your loved ones more peace of mind. If you get whole life insurance, it can also provide you with some benefits while you’re still alive. You never know what might happen in your day-to-day life. You can never assume that you will die when you are much older and retired. It’s always best to expect the unexpected when it comes to death because you will have some backup if death comes at the least ideal time. If you suddenly die when you have dependents or significant financial obligations, your death could be much more stressful to those who have a substantial role in your life when you don’t have life insurance.

Reasons You Should Have Life Insurance When You’re Single:

1. Ultimately Someone Will Be Paying For Your Funeral

One of the biggest reasons to have life insurance is because funerals are not cheap. When you die, someone will be paying for your funeral, whether it’s your family or close friends. Funeral planning involves many expenses, such as picking out caskets, cremation fees, and paying all who help to put on the funeral service. On average, a funeral in the USA costs between $7000 to $12000. These costs can be an enormous financial burden for those who love you, and many families who had a member who died without life insurance coverage end up needing to fundraise money so they can celebrate the deceased’s life.

Having life insurance will help the people who end up responsible for paying for your funeral and all the expenses that go along with it. In addition, having life insurance creates an excellent relief for those who will do anything to make sure that there is a nice ceremony to remember you by and celebrate your life the best way possible.

>>More:  How Are Health Insurance Premiums Calculated| How To Choose A Life Insurance Beneficiary | How To Lower Car Insurance | Is My Old Life Insurance Policy Worth Anything?

2. You Owe A Lot Of Debt

If you owe a lot of debt and you die before you pay it off, it’ll make it much easier on your family members if you have life insurance. Because when the death benefit from the life insurance pays out to your beneficiary, they can use it to pay off any outstanding you have.

If you have any assets that you will be passing down to your beneficiaries, none of these assets would be able to be inherited until your unpaid debt gets paid. If you do not have insurance coverage, your estate will pay your debt. Your family members will not be responsible for paying for your debt, but it will make it more difficult for them to get their inheritance if there’s no life insurance and not enough money in the estate.

If you have credit card debt or an active mortgage, these are two of the most popular types of debts that will be paid for by your estate. Thankfully, some debts, like student loans, are forgiven when the borrower dies.

3. You Have Joint Debt with Someone Else

If you have joint debt with someone, such as a joint mortgage or car loan, then it’s essential to have life insurance because if you die, the other person on the contract will need to cover your portion of the debt. When people get joint loans, they are often only prepared to pay for the amount you both decided on. It can cause a significant financial burden on the other person if they suddenly need to pay double or more than they are used to paying.

4. You Have Dependents

Suppose you have anyone you care for or depend on your income to survive, such as biological or adopted children, especially if they are still young. In that case, it’s essential to have life insurance even when you are single. If you die, your dependents will suddenly lose the income that helped them live. If you have life insurance, then part of it will pay out to your dependents if you list them as beneficiaries to help them get by at least temporarily.

5. You Have A Family History of Health Problems

If you have a family history of health problems, especially if you know that it’s a hereditary disease that could be terminal, then it is a good idea to have life insurance set up. Also, if you see that it’s a possibility that you could die earlier than what would be ideal, then helping those close to you pay for your funeral expenses with life insurance would be a good idea. Keep in mind that if there are known health issues, it could cause you to pay a higher insurance premium.

6. You Have Cosigned Debts

If you have any cosigned debts, the cosigner is responsible for covering your missed payments and paying off the rest of the debt when you die. Having life insurance set up will help the cosigner pay off the loan and cause them a bit less financial stress.

7. You Are In a Business Relationship

It is possible to get life insurance specifically for business partnerships. If you have life insurance while in a business partnership, your life insurance will help protect the other partner if you were to die. Having life insurance in a business partnership is a good idea; many people don’t think they will die before retiring. However, as mentioned before, you have to expect the unexpected to ensure your essential partners will have a plan for costs.

Analyze Your Situation to Decide If You Need Life Insurance While Single

When you decide whether or not you should apply for life insurance, make sure you do a thorough analysis of your life situation and what possibilities there might be in the future. Think about your family and if you plan on adding more family members in the future. Think about your debts and partnerships. Also, look into the different types of life insurance available. For example, you can get life insurance policies that are only effective for a temporary period, and you can get life insurance policies that will last for the rest of your life.

Before you apply for life insurance, make sure you speak to an insurance professional who will give you more guidance and answer any questions you might have as a single person wondering if life insurance is right for you.

Sources

Read More