Why Single People Need Life Insurance Too
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There are plenty of people who never get married or have children, either down to circumstances or choice. If you’re single, life insurance is probably not even a consideration, let alone at the back of your mind. Think about it, if you don’t have dependents (i.e. kids, spouse), then why protect something that doesn’t exist, right?
That’s the common attitude for many, but in real terms, life insurance can be beneficial for all – even those who are single.
It’s true that responsibilities are different depending on your relationship status, but that doesn’t defuse the need for protection. We’ll look at why having cover is essential, despite if you have dependents to take care of or not.
Do single people really need life cover?
Every stage in life brings in extra responsibilities, whether you’re in your early 20s or about to retire. And while most of us have the support from people around us, it isn’t always enough in cases of death and money.
The worst part about death is that we don’t know when it’s going to happen. It’s impossible for any of us to know that we’re going to die when whether we’re aged 32 or 65. Instead, it’s up to each of us to put protection in place, so that if the worst does happen, our families will have adequate support.
In many ways, life insurance is similar to an inheritance. Even if you’re single, there’ll still be family members like parents or siblings who may need financial support in the event of your death.
A funeral alone can be costly for your family, especially if they aren’t in the best shape financially themselves. But if you have a life insurance policy, the funds can be paid out to them in order to help cover such costs.
On the other hand, who knows what the future holds? While you may be single now, who’s to say you won’t meet someone in a year’s time? Buying a policy now means you already have cover in place if your situation changes. By then, you’ve already done the hard part.
How much cover do singles need?
In most cases, you won’t need as much cover as someone with dependents. Essentially, it comes down to ‘the here and now’ or the future. If you’re thinking about now, then you’re ideally needing cover for your immediate family. This also includes any debts or obligations you currently have.
If you’re looking to the future, you might want to consider things like living costs for your partner, spouse or even to cover a mortgage if you have plans to buy a house one day. If you plan to have children in the future, you’ll want to think about their costs too.
How much does life insurance cost for singles?
When you take out life insurance, you pay a mandatory monthly premium to your insurer. Paying this ensures the policy continues to run, so you can’t afford to let payments lapse.
The sole costs of these premiums tend to vary depending on factors such as your age, health, lifestyle, and the amount of cover you choose. Age and health being two of the biggest influencing factors.
Younger people can expect to pay less as they are likely to be in good health and less likely to have health issues. The lower the risk, the lower the cost. Where as older applicants could pay more because of the risk of potentially developing health issues or passing away sooner.
What type of life insurance should I get?
The real elephant in the room is the type of policy you choose. Whole and term life insurance are the two main types of policy, but provide protection in different ways.
If you’re looking for permanent cover, then whole life insurance will be your best choice. Under this policy you are covered right up until you die, but only as long as you pay your premiums. Ideal if you’re thinking about the future and want to be prepared for any changes that occur.
But some people don’t want the commitment of permanent cover. Which is where term life insurance may be a suitable option. Unlike whole cover, the policy runs for a certain length of time, 20 years, for example. Passing away during this time means the policy will payout, but if you reach the end of the term, it expires.
Costs also need to be factored in when making a decision between the two. As cover is permanent, whole life insurance will usually have higher premiums as opposed to term life which only lasts for a specific timeframe. The one you choose will depend on your current situation as well as your hopes and plans for the future.
So even if you’re single, and pondering about what the future might bring, life insurance can be a worthy investment. Things can change quickly, so you never know when you or your future dependents may need protection.