Do I Need Life Insurance if I’m Single?
When the topic of life insurance comes up, it often addresses married couples and those with kids. This leaves the impression that life insurance isn’t necessary for a single, childless person, but there are plenty of scenarios where someone in this situation could need coverage. If you’re wondering why you should consider life insurance with no children, here are a number of reasons when it makes sense;
Maybe You Plan On Having Children Someday
If you don’t want kids now but are planning to have them in a few years, buying life insurance now could be a great option. When children come, the bills and expenses tend to increase; so having life insurance in place now means that you’ll have coverage when they are born.
You might not need an extensive policy right off the bat, but by starting sooner than later, you’ll be laying a foundation for your family. You can always increase your coverage amount when you have children. Furthermore, you protect your insurability for the future.
You Have Student Loans
Debts are expensive, annoying, and very common. There’s always an assumption that debts are discharged when the borrower dies, but that’s not always the case. While federally funded student loans are discharged if you were to die, private loans that have a cosigner are often not. This means that your parent or someone else who cosigned your student loan would be on the hook for the loan payments if something happened to you. You don’t want to leave your loved ones dealing with grief and loan payments. Life insurance coverage provides an affordable solution to help protect against your student loans.
You Have Other Debts
Most people have some type of credit card debt, car loan debt or another kind of personal loan that is not cosigned. If you’re single and qualified for the loan on your own, the debts will be paid off of the proceeds of your estate. This can be a complicated situation for surviving family members. It’s a good idea to cover all your debts if you can since life insurance for federal government employees is affordable and accessible. This means that after your passing, the debts can be settled out of the life insurance proceeds. Your estate will be free and clear for your family members to divvy up according to your wishes.
Someone Else Is Depending On You Financially
If you’re planning to help a disabled sibling, aging parents, or just another individual who depends on you for their financial future, consider accounting for that in your life insurance. Your coverage could help pay for living expenses and health care if you were no longer around. This is much like life insurance for your aging parents or young siblings. You’ll need to figure how much funding you want them to have for how many years, but it can be complicated. As a simple hack: for kids in your family, use an online life insurance calculator and input the information as if the child is your own. For elderly parents, consider them as your partner and list them as not working, including their debts too.
It Will Pay for Your End-Of-Life Expenses
Even if you’re entirely on your own, debt-free, and never want to get married or have kids, it still makes sense to consider a life insurance policy. No one likes to think about his or her death, but the reality is that someone will have to pay for your end-of-life and funeral expenses. You wouldn’t want to leave your friends and family members struggling with grief and having to go into debt to cover funeral and burial expenses. Having life insurance will help your loved ones, financially, should the worst happen.
Your Family Has a History of Heritable Health Condition
Do any of your family members have diabetes, heart disease, hypertension, or other significant health issues? If so, you’re likely to be diagnosed with the same conditions in the future. Consider initiating a life insurance policy now, while you’re still healthy. The coverage will be affordable, but if you wait until one of these conditions arise, it could become much more expensive and overwhelming. Buying life insurance now is planning for the foreseeable future.
If you’re currently single, chances are your situation fits someplace on this list, unless you’re financially secure, have no debt, and no financial dependents. For just a small monthly payment, you’ll be better prepared for whatever comes next. If you’re not sure of where to start, consider joining WAEPA.
This article is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.