When the topic of life insurance comes up, people typically discuss how families and businesses can protect their assets in the future. They don’t usually think of it being applicable to single people. But life insurance is really a long-term benefit that everyone should consider. Even if you aren’t married or don’t have kids, it doesn’t mean your death won’t have a financial impact on others in the present or in the future.
There are several reasons you might want to purchase life insurance even when you’re single. Here are four big ones:
A life insurance policy is designed to protect your loved ones financially by helping with the bills, which can also help them cope with loss. If you’re single, there’s still a good chance you have others to worry about. Nearly 11 million families with children are single-parent homes, according to the U.S. Census, including elderly parents and special needs siblings who require caretaking. And there are more than 43 million people in the US who look after older, ill or disabled family members and friends, according to a National Alliance for Caregiving and AARP study. A life insurance policy can be a big help to those who depend on you if you suddenly pass away.
Having a life insurance policy can also make sure you don’t pass on any substantial debts to surviving family members. Along with your personal debts, you may have co-signed a student loan or a mortgage with your parents or other family members. If you die before that loan is paid, they will end up owing the full amount. Consider a policy that doesn’t stick them with unexpected bills.
Covering Funeral Costs
When you die, funeral service costs can be quite expensive for your loved ones. An average funeral costs between $7,000 & $10,000. A life insurance policy can help ensure those expenses are covered and help to ease the burden to your family, financially and emotionally, in their time of sorrow. Instead of dealing with bills, they can spend time grieving your loss and remembering your life.
Building Your Legacy
You may be single now, but buying life insurance can be part of the financial plan for “future you.” Having a policy in place gives you a head start in covering a potential spouse or children. Life insurance also gives you the opportunity to leave a generally tax-free death benefit1 to nephews and nieces, or other family members who come into your life later. You can a buy a policy that could allow you to leave money to a charitable organization as well. Whether you’d like to take care of someone financially in the future or leave a legacy to a charity1, purchasing a life insurance policy can help ensure that goal.
If you do buy a policy as a single person, you can also build on your existing coverage whenever a big life event takes place, like getting married or having a child, so make sure to re-evaluate your coverage whenever you experience a life event change.
Qualifying for Low Costs While You’re Young
Buying a life insurance policy when you’re young can be much cheaper than when you’re older. Waiting to get coverage until you’re married or have children can be costly. Similarly, purchasing a policy when you hit your older years can often mean paying higher premiums, especially if you have health concerns. If you have serious health problems later in life, you may even be ineligible for coverage. By acquiring a life insurance policy early, you may obtain coverage while you’re young and in good health, and you generally can qualify for lower premium rates.