Insurance Q&A: “Do I need life insurance if I am single?”
Life insurance isn’t just a policy that will pay a large sum of money to your spouse and children if you die. Single individuals stand to benefit from life insurance as well.
We’ve all seen the commercials and heard the horror stories of families riddled with debt, with no options because “Ted” didn’t have life insurance.
Typically, life insurance is pitched to us by appealing to our fear of leaving our family without a safety net after we expire.
It’s true; life insurance can provide assistance to a family who is left with no breadwinner. Appropriate policy limits will allow for such things as paying off an existing mortgage and other outstanding debts, while ensuring the kids can go to college in the event of an early or unexpected passing.
Just because you’re single doesn’t mean you don’t have family members’ interests to protect. There are a few key circumstances to evaluate when considering life insurance if you’re single. The first of which is funeral costs.
If you were to die suddenly, depending on the circumstances surrounding your death, your nearest relative would have to pay for the costs associated with your burial. Funeral costs could set your family back somewhere between $5,000 and $10,000; a proper life insurance policy would spare your family that expense.
Now let’s consider your outstanding debts. If you’re the typical American, you owe someone, somewhere some money. Debt doesn’t simply disappear when you die. Your closest relative would be responsible for it. Again, a life insurance policy will protect your closest living relative from debt collections in your name.
If you are single, purchasing a life insurance policy could be beneficial for all of the reasons listed above. Depending on the terms of your employment, you may be able to purchase a term life insurance policy for less than $50 per month. This is a relatively small price to pay to ensure your living relatives are not saddled with debt in addition to mourning your passing.
It is recommend that you obtain an online insurance quote as the first step to purchasing a life insurance policy that will serve your individual circumstances.