“No, I’m not married yet.” Single friends, how many times have you said this sentence? I know every time I go to my grandma’s house I say that phrase. Many people don’t realize that just because you’re single, doesn’t mean you are lonely. You have your parents, siblings, friends, and maybe you are in a relationship, you just aren’t married. Even single, your death would still have a financial impact on others. Children are not the only ones who can be financially devastated by the death of a loved one. This being said, just because you don’t have children, doesn’t mean you shouldn’t have life insurance.
There are four reasons why a single person may want life insurance:
- You may have outstanding loans and debt.
- You have people who depend on you.
- You want to cover your own end-of-life costs.
- Life insurance is less expensive when you’re younger.
Outstanding Loans and Debt
If anyone has ever co-signed on a loan for you, they would be responsible to pay the balance if you did not. Whether this is a student loan, personal loan, FHA loan, or a credit card, that person who helped you out by co-signing for you would be quickly in over their heads if you died. Having an unexpected bill suddenly drop in their lap is the last thing they need to deal with when grieving over you.
Purchasing a term life insurance policy would ensure that your co-signers would not have to financially struggle because of your debt. You would purchase enough term insurance to cover the length of time you think it would take to pay off your loans and other debt.
Example: Your parents co-signed on your student loans. You have roughly $25,000 in student loan debt that you believe you can pay off in 20 years. Purchasing a term life insurance policy with a 20-year term would be very inexpensive and would make sure your parents would not be faced with financial tragedy along with the emotional and physical tragedy of losing you.
People Depend on You
While parents always hope that their children outlive them, sometimes they don’t. But what happens if you are the main caretaker of your aging parents and you die before they do? Who is going to take care of them and where will the money come from to ensure their quality of life does not change? If they did not plan ahead financially themselves, you need to. A life insurance policy can fund the services you provide if you’re no longer around.
It may not be your parents you are helping to take care of either; perhaps you are the sole caregiver for another relative or close friend. You may not be married, but are you in a committed relationship? Does your significant other rely on your income in addition to their own? If you and your significant other live together and both contribute to bills, rent or a mortgage, and other finances, what happens if one of you is no longer around suddenly? You are there supporting and protecting each other through thick and thin every day; plan ahead to safeguard your futures even if one of you is no longer able to be there.
One always hopes to live a long and healthy life, but sometimes that’s not how it goes. If an illness or injury occurred causing you to be hospitalized for an extended period of time before dying, the cost of the medical bills could quickly escalate. In addition to these bills, your funeral service is an additional cost. Someone has to pay for all this and if you are no longer around, it is going to land on your loved ones. Life insurance can help pay for all of these unexpected expenses.
Example: Let’s say in addition to the co-signed student loans, your parents now have $30,000 in medical bills from your hospital stay, and your funeral costs $15,000. In addition to losing you, they also have to find a way to pay off $70,000. Being young and healthy now saves you a ton of money when shopping for life insurance. A 30-year old could get a 30-year term life insurance policy worth $200,000 for approximately $16 a month.
Lower Life Insurance Costs
You’ve heard it before: the younger you are, the cheaper your life insurance. This is a true statement. There is less risk of you dying when you’re young, so the life insurance companies don’t ask you to pay as much. As you get older medical problems can creep in, which would have a direct effect on the cost of life insurance. There is always a chance you could become uninsurable as well.
You may be single now, but do you plan on retaining this status forever? Do you want to eventually get married and have children? Purchasing life insurance now can save you hundreds later and it would make sure your loved ones are protected. Life is ever-changing and we don’t know what tomorrow may bring. It takes 30 seconds to see how little it would cost you to own a term life insurance policy. Online life insurance agencies like Quotacy let you get term life insurance quotes instantly. Try it out – you do not even need to give up any personal contact information to see pricing either. Term life insurance is peace of mind. This may be the one thing you wish you didn’t put off until tomorrow.