Do I need life insurance if I’m single? Many people believe that life insurance is only a need after you marry. But, individual circumstances can create needs at other times. And expectations for the future, like the prospect of a future spouse and family, can also create compelling reasons to carry coverage, even though you are single now.
Here are a few reasons you should consider coverage even though you are single.
Debts and Obligations
No one expects to die young. The percentage of people that do is naturally far lower at say, 25 years old, than at 75 years old. But if something unexpected does happen, chances are good that you have unpaid obligations. And you would not want to burden your family with any debt or final expenses.
These obligations might include things like:
- Co-signed Mortgages
- Co-signed Credit card debt
- Co-signed Student loans
- Co-signed Auto loans
- Burial Expenses
Though your life insurance needs may be small, you might have them just the same. Purchasing a term policy is an excellent way to cover only what you need and for the period of time you expect to have those needs (10 years to pay off a student loan as an example).
In addition, if you are not in a position to be creating any meaningful savings for yourself, you need to understand that someone who loves you will be spending between $10,000 and $25,000 on funeral expenses. Something they may be ill-prepared to manage.
Dreams for the future
You may not be married now, but you may have dreams and aspirations of some day meeting that person that will set your heart aflame. With each year you wait to get life insurance coverage, the premiums increase (for the same coverage as you would have received a year earlier). In addition, your health could change, making it more expensive or even impossible to gain coverage.
As an example, you might be in excellent health with a great family health history at age 25, and you might qualify for “Preferred Plus” rated premiums. This coverage is typically about 50% lower than “Standard Non-Smoker” rated premiums1Based upon research done using the industry quoting tool “Term 4 Sale”. (every carrier differs in their ratings and pricing, so consider 50% a close approximation of the industry average).
But lets say that you elect not to get coverage at age 25. Instead, you wait until you are 28, and have met that perfect someone and are getting married. Now, you feel the need to get coverage that would help your loved one if something happened to you. But, you may not be in as good of health as you were at 25. Therefore, the insurer will quote you a more expensive premium, based upon your older age, and the added health risk.
Had you purchased coverage at 25, the rates would have locked in for the term of a level term life insurance policy (between 10 & 30 years typically). But having delayed, you will likely pay higher premiums. If we are purchasing a new policy, every year we age, our premium will be a little higher than they would have been if we had purchased the previous year.
For this reason, many people choose to carry coverage based on their dreams and aspirations for the future rather than their current need. So long as those aspirations are not unreasonable, insurers are happy to afford you coverage based upon qualification. (Applying for a $10,000,000 policy when you have an annual income of $50,000 would be unreasonable. Applying for a $1,000,000 policy based on that same income might not be).
Term Life Insurance is super inexpensive for those who are active, healthy and have a good family medical history. To find out just how inexpensive it could be for you, give us 90 seconds, and get 5 no-obligation, online quotes.
You may have chosen “singleness” for yourself. You enjoy being single and don’t ever expect to marry and have a family of your own. You may also be single again, with no expectations of tying the knot again, and no children of your own to provide for.
Many people find that leaving a legacy through providing financially for others is something they desire. Having life insurance coverage that would provide financially for aging parents, or that would help siblings pay for their childrens’ college educations are examples of legacy gifts that people leave to beneficiaries they love.
Life insurance when you are single makes sense
It’s not for everyone. Some people who are single have amassed enough wealth that all of their obligations are covered, and they can even leave financial gifts to loved ones or charities. Only you know your situation. For many though, the prospect of burdening others if something should happen to them is not the legacy they want to leave their loved ones.
Life insurance, especially at younger ages, is extremely affordable for those who qualify, which makes it a valuable part of your financial portfolio.
NOTE: When reading about life insurance, keep in mind that everyone’s situation is different and insurance coverage may differ from carrier to carrier. Articles such as this one describe some of the most common situations, but variations exist. Always read all of the information about the coverage so you understand the specifics before you apply.
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|1.||↑||Based upon research done using the industry quoting tool “Term 4 Sale”.|