For married people or those with kids, it is almost a given that they require life insurance. This is a safety net that ensures their loved ones are taken care of, should something unfortunate happen. However, if you’re an individual, young and in good health, the notion of life insurance might seem irrelevant or unnecessary.
Your own death could be an extremely unsettling thought that you would rather not deal with. However, contrary to common assumptions, being single doesn’t exempt you from needing life insurance. Financial advisors often concur that only a very small portion of the population doesn’t need life insurance at all. Regardless of your marital status, below are seven arguments as to why singles also need to consider life insurance:
1. UNEXPECTED DEPENDENTS
The term ‘dependents’ is often associated with children. Yet, there might be other people in your life who lean on you for financial support that you haven’t considered. Many singles assist their aging parents or a sibling who needs extra care. If you’re already providing financial support or predict needing to in the future, having life insurance to cover these costs is vital. Even the healthiest of us aren’t immune to life’s unpredictability – it’s best to secure those relying on you financially against unexpected circumstances.
2. LOWER COST WHEN YOUNG
As you age, life insurance becomes more expensive. Insurance companies are aware that with the passing of time, people are more likely to encounter health issues and complications, making them riskier to insure. Therefore, it’s more economical to buy insurance at a young age when it is substantially cheaper. That’s another reason why young, single individuals should strongly consider life insurance.
3. EXISTING DEBT
Unless you’ve been extremely disciplined with your finances or have a safety net, it’s likely you have some outstanding debt. These debt obligations don’t just disappear upon your demise. Certain debts, like federal student loans, might disappear, but most others don’t. Ultimately, someone will have to settle your debt. Life insurance can lessen this burden by providing necessary funds for your estate and bills.
4. BUSINESS OWNERSHIP
Business partnerships are often fraught with complications when one party passes away unexpectedly. If you have a business venture with someone else, having life insurance becomes even more essential. This ensures your partner can keep the business afloat should something happen to you.
5. FUTURE DEPENDENTS
You might be single now, but future circumstances might change – you might have a spouse or children. General foresight is never a bad idea. Acquiring life insurance while you’re young and healthy secures coverage for when you might need it – the time when you have dependents.
6. END OF LIFE EXPENSES
Even as a single person, your funeral arrangements will likely be undertaken by a close friend or relative. The cost of funerals and associated services can be prohibitive, running into thousands of dollars. Having a plan in place to cover these expenses eases the burden on your loved ones.
7. PHILANTHROPY
A life insurance policy also allows you to leave behind a legacy for a charitable cause if you desire. Purchasing life insurance can allow you to dedicate part, or all of it to an organization of your choice. This way, even without dependents, your policy continues to contribute positively.
Life insurance adverts often focus on smiling couples or families. Although these groups are significant targets, they aren’t the only groups that require coverage. Regardless of your stage in life or future plans, single individuals also need life insurance. Consider the potential residual impact on those left with your responsibilities and proceed to invest in a suitable plan for your needs.
Do you have life insurance? Do you agree that singles need life insurance?
