March 10, 2021

Do I Need Life Insurance If I'm Single?

Read more about Life Insurance

Life insurance isn't just for families and married folks. Find out why single people are smart to consider a policy right now.

Life insurance provides a payout to your loved ones when you pass away. Even if you're single, it can make a huge difference for anyone who depends on you.

However, there are reasons why a single adult may not need a policy. Find out which lifestyle factors make life insurance worthwhile and who can skip it.

Reason #1: You might not be single forever

Many people buy a life insurance policy when they get married. But waiting until then will only drive up your rates.

The older you get, the higher chance you develop health issues. That means higher rates.

Plus, more medical tests are required by the insurance carrier as you get older.

So, even if you're set on living the single life, consider opting for financial protection now. You never know when you'll meet that special someone.

Reason #2: You have debt with a cosigner

If you don't pay your cosigned debts before you pass away, your cosigner would be required to cover it in your place.

Not an ideal situation after suffering the loss of their favorite person.

You might have cosigned debt if you have:

  • Private student loans (federal student loans are usually discharged if the borrower passes away)
  • Apartment leases
  • Car loans and leases
  • Credit card agreements
  • Home loans

A life insurance policy could pay any outstanding debts and protect your cosigners from having to pick up the tab. Consider a term life policy for the length of time it would take to pay off the debt.

Getting a life insurance policy usually goes hand-in-hand with creating a living will. If any of the below criteria apply to you, make note of your requests in your will, as well.

Reason #3: You have a mortgage

Passing away doesn't mean the bank will forgive the rest of your mortgage.

When the mortgage goes unpaid, the lender can take the house. They may even sell the home to cover the rest of the mortgage.

If you plan to will the house to anyone, a life insurance policy can help them cover the rest of the mortgage after you're gone. Otherwise, it's fair game for the bank.

Reason #4: You co-own a business

Your absence could threaten the financial stability of your business. Plus, it may compound the effects of any outstanding business debt you leave behind.

Consider devoting some of your insurance benefit to your business or naming a business lender as a beneficiary.

That way, your partners get a little breathing room and the legacy of your business could live on.

Reason #5: Someone depends on you

"Dependents" doesn't just apply to your own kids.

A life insurance policy could be a life-saver if you have any of the following:

  • Aging parents or grandparents
  • Special-needs family members
  • Kids who aren't biologically yours
  • Any family members who rely on you for assistance

Depending on who you support, you'll likely want to factor in their debts and living expenses for each year you plan to cover them. Don't forget to account for long-term care for any loved ones with special needs.

Reason #6: It can cover your end-of-life wishes

It might be a little morbid to think about, but don't you want to make sure your end-of-life wishes are respected?

When you're gone, the executor of your will is responsible for making arrangements like a funeral and burial.

A life insurance policy could pay for those arrangements. This is a good option if your estate is not enough to cover it alone.

If nothing else in this article applies to you, getting a policy to cover this expense is still a wise choice. It wouldn't require an expensive policy and you can rest easy knowing it's all taken care of.

Other Reasons Why You Might Get Life Insurance

A modest life insurance policy can be valuable, regardless of whether you're married, have kids, or own a home.

Here are a few other reasons to opt for a life insurance policy if you're single:

  1. You can leave money to your favorite charity.

  2. A family history of illness will make rates go up as you age.

  3. You can help roommates cover rent until the lease is up.

  4. You might have kids in the future.

But we won't lie to you: not everyone needs a life insurance policy. If you check some specific boxes, you can probably skip out.

You could skip life insurance if…

Life insurance is not a worthwhile expense for everyone.

If all of the following apply to you, there's not much else that would make life insurance worth the cost.

  • You're completely debt-free
  • No one would be in financial trouble without you
  • Your estate is enough to cover end-of-life costs

For example, if you're a single older adult with all your retirement covered, you might be fine to skip life insurance. The premiums you save can be used for other investments, philanthropy, or however you see fit.

Bottom Line

Life insurance may not be at the top of your to-do list, but there are plenty of reasons to reconsider and move toward getting a policy. If you want to move on knowing your debts and loved ones are taken care of, or if you just want to take advantage of your good health right now, start getting some quotes today.

Holly Zorbas is a guardian of content and community at CreditDonkey, a life insurance comparison and reviews website. Write to Holly Zorbas at holly.zorbas@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

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How Much Life Insurance Do I Need

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