Do you really need life insurance if you're single?

Even if you're single, life insurance can protect others from financial burdens brought on by your passing. Not to mention, life insurance rates for young people are generally lower than they are for other customers. Getting life insurance while you're single and young could let you access lower rates and longer terms, which could be especially helpful if you were already planning to get life insurance later in life.

We all know it is responsible to get life insurance when you have others relying on you day to day, for food, housing, clothing, child care, and all the things we need but what about when it's just you? Below are some reasons that you should look at life insurance while you are young and single.

Final expenses

Life insurance can be an important way to pay for your funeral and other end-of-life expenses, so your parents or siblings aren't burdened with that cost. A permanent life insurance policy, like whole life insurance, is more affordable when you purchase as a young person, and it will last until you die, without increasing in cost, guaranteeing there is money to pay for your funeral. If you're older, final expense insurance is available to individuals well into their 70s and even into their 80s, (but the cost is a lot more and it can be harder if they have developed health conditions) and it's designed to cover your end-of-life expenses so your estate isn't burdened with those costs.

Family history of health issues

If there's a possibility that you could develop a serious health issue later in life (ask your parents about family health history), getting life insurance now, while you're still young, and healthy can be a way to qualify for a more affordable insurance than you would if you wait until you are older and maybe develop some of the diseases that your family is prone to getting. If you wait, you may not qualify for life insurance or at the very least it will cost a lot more.

You have a mortgage

If you're currently single with a mortgage on your house, having life insurance to pay off your loan can help whoever you leave the house with the remaining payments. It could be even more beneficial if someone else signed the mortgage with you, because the remaining debt would fall to them. In either case, term life insurance can provide coverage until your mortgage is completely paid off.

You have student loans or debts with a co-signer

If family members helped you get your college loans or first car loan, it may be worth considering life insurance to pay off the debt, in case you were to pass away unexpectedly. Even though federal student loans are typically forgiven upon the borrower's death, that isn't the case for private student loans. If you  die, the financial responsibility falls to your co-signer. Having life insurance can cover the remaining payments if the worst happens.

You're supporting a family member

Life insurance can be beneficial to financial dependents other than a spouse or child. If you're single but supporting your parents, grandparents, a younger sibling or a disabled family member, life insurance will help provide for them if you were to pass away unexpectedly and they lose your income assistance.

You own a small business 

If you're an entrepreneur, a life insurance policy with the your partner listed as your beneficiary the organization can help keep the business running if  you pass. The death benefit could be used to hire someone to replace you, allow your partner to buy remaining shares, or provide for extra employees if needed. Make sure that your partner gets an identical policy with you as the beneficiary so that you can do the same if something happens to them.

You want to leave a legacy to your church or charity

Life insurance isn't just for providing for family; it can be a way for you to leave a legacy when you pass away. Naming an organization like your church or the Red Cross as the beneficiary would allow you to make a large donation when you pass away, and you can even split your death benefit between multiple people and organizations.

Besides the reasons listed above just securing life insurance when it is cheapest to buy is economically smart. You see the savvy life insurance buyer is going to buy a policy or two when they are young, and healthy single or not, so they can lock in the low price and benefits for when they need it the most.  

Let me know if you have questions about life insurance or other insurance related questions.

jasonedwards@shelterinsurance.com