Are You Single? see 5 Reasons Why You Need Life Insurance

“Do I need to buy life insurance?” Single people ask this question all the time. Usually, married people need life insurance because they have dependents – people who rely on their income. Single people, on the other hand, don’t have kids or spouses. So why should they buy life insurance?

1. Policies are cheaper to purchase when you are young

Not every millennial needs to buy life insurance. If you are unemployed, and still searching for a job, it would be an unnecessary expense. The more you age, the higher the insurance policy cost becomes. To avoid paying more, you should consider purchasing insurance while in your twenties. Also, you are more likely to contract chronic health conditions as you get older; this could either increase your life insurance premiums or make you ineligible for coverage. Therefore, buying life insurance when you are young ensures coverage and lower premiums.

 

2. If you are worried about burdening your co-signers

Have your friends or family members co-signed mortgages or student loans with you? In the event of your death, they will have to pay off your loans by themselves. Furthermore, planning a funeral is a costly affair. Your loved ones will struggle with debt once you are gone. To prevent this from becoming a reality, you should get a life insurance policy. Doing so will enable your family members to mourn in peace once you are gone: without getting hounded for payments.

3. If you support other people

Single parents should purchase life insurance to support their children in the event of their death. Even if you don’t have children, you may have other people who depend on you financially: elderly parents and special-needs relatives. The best life insurance policy should provide a financial safety net for your dependents once you are gone. To determine how much insurance you need, work with a financial planner.

4. Leaving a legacy

If you are passionate about something, or you’d like to take care of someone financially in the event of your death, you need a life insurance policy. This purchase isn’t sensible unless you have put cash into your retirement and emergency funds, and still have enough money left over.

5. If you want to keep funding your business

Are you a small business owner? Purchasing life insurance allows your business to continue in your absence, especially if you have partners. Your partners will be able to purchase your part of the business. This is only possible if the business partners had entered into a buyout agreement – which governs the situation when a co-owner leaves, dies or is forced out of the business.
If you purchase life insurance when single, you should remember to re-evaluate your coverage once your situation changes: when you get married or have a child. Re-evaluations allow you to update your list of beneficiaries. If your current coverage proves to be inadequate, you should consider getting supplemental coverage.

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