Life insurance for single people: 7 reasons why they need it

It’s a common misconception that life insurance is only necessary for those who are married or have children. However, there are many reasons why single people need life insurance as well. Here are seven of the most common reasons why:

1. You have deb

If you have debt, such as private student loans or a shared mortgage, life insurance can help ensure that your cosigners or fellow borrowers are not left with a financial burden in the event of your untimely passing.

2. People depend on you

Just because you’re single doesn’t mean that you don’t have people who depend on you. This could be young children, aging parents, or disabled siblings. If anyone relies on your income to make ends meet, life insurance is a must.

3. You own a business

If you own a business, the financial institution that issued your business loan may require you to have life insurance to ensure that they get their money back if you die before the loan is paid off. Additionally, if you have a business partner, “key person” insurance can help keep the business afloat in the event of your passing.

4. You want to pay for final expenses

The cost of a funeral can easily exceed $10,000. Without life insurance, your loved ones will be left with the burden of covering these costs.

5. You want to grow your wealth

Permanent life insurance not only provides a death benefit, but it also accumulates cash value on a tax-deferred basis. This accumulated cash can be used to increase your personal wealth, buy a home, supplement your retirement income, cover an emergency expense, and more.

6. You want to lock in coverage while you’re young and healthy

Your health affects whether you can get life insurance and how much you pay for it. By locking in coverage at an affordable rate while you’re young and healthy, you can ensure that you have coverage in place when you need it.

7. You want to leave a legacy

Life insurance can be used to leave a legacy by providing a financial gift to a beloved school, religious organization, charity, or person.

If any of these reasons resonate with you, it’s important to speak with an insurance professional about your options. They can help you determine the right amount and type of life insurance for your needs and budget.

It’s also worth noting that life insurance can be more affordable than you might think. According to a study by LIMRA, a life insurance research and consulting organization, 44% of people overestimate the cost of life insurance by three times or more. In reality, a healthy 30-year-old can often get a $250,000 term life insurance policy for as little as $160 per year.

Life insurance is not just for married people or those with children. Single people need life insurance too, for a variety of reasons. By considering the reasons outlined above and speaking with an insurance professional, you can ensure that you have the right coverage in place to protect yourself and the people you care about.

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