Do you need life insurance if you’re single? Single people—often with no children—may not need a life insurance plan. They often don't have to worry about caring for survivors if they pass away unexpectedly. Simply put: No one relies on their income.
This said, a life insurance plan might not be a bad idea. Even if you’re single, you still need to prepare for the worst. According to a USAA Life Insurance survey, the number of singles buying life insurance is growing. Among 20-somethings, experts have seen a 24-percent rise in plan purchases.
Taking Care of Debt
Your debts, such as federal student loans, will likely go away if you die. If these loans are unpaid, the government will write them off. But, if you have any student loans cosigned by your parents, they’ll need to pay for them. This situation is similar with other cosigned debts, including:
- Car payments
- Jointly-owned credit cards
- Any other debt cosigned by another
Many young people use term life insurance, policies that only last a number of years, to cover this debt. Because term life insurance usually isn’t expensive, try to cover as many debts as possible. In doing so, you’ll protect your friends and family members if something bad happens. You’ll also make sure your estate is free, clear and easily divisible if you die.
Your Business Opportunities
A lot of people start their own businesses. Or, they work alongside several partners to create new entities. If you have business partners, you’ll need to have contractual provisions to protect the business itself. Thus, you’ll need a life insurance policy. Your life insurance policy can also cover your business partners if you, the policyholder, dies. From a professional standpoint, a life insurance policy is one of the most important investments around.
Eventually, You’ll Want Kids
Sure, you’re young now. Eventually, though, you might want kids. Even if you’re waiting to have children, you should buy a policy today. Life insurance policies are cheaper if you’re young. While you might not need coverage, establishing a base plan will often save you money in the long run. Plus, you can always add another policy at another time. You can also increase your coverage amount if you have kids.
So, even if you’re single, a life insurance plan never hurts. Term life insurance is affordable—especially if you’re healthy. Make sure you set up your plan’s beneficiaries correctly. If you’re buying a policy for several reasons, make sure you’re setting up multiple beneficiaries. Weigh your options, get your finances in order and benefit from one of the most valuable long-term policy options around.