The need for life insurance is simple if you provide income for your immediate family, but it can be harder to see the need for coverage if you are living as a single person. What if you do not have a spouse or children? What if no one relies on the income you make?
While these questions make sense to ask, they can be misleading. The most important question to ask when considering life insurance is this: “Will my untimely death financially impact someone in my life?”
As a baseline, consider whose responsibility it might fall on to pay for your final expenses. Even if your loss of income will not impact your family, relatives like your parents, siblings, or extended family members might still be liable for paying funeral expenses, medical debts, student loans, and more.
Here are just a few things that might need to be paid for by a family member after you pass away:
The median cost of a funeral in the U.S. is $7,848 for burial and $6,971 for cremation, according to the National Funeral Directors Association, and funeral costs can quickly add up to more than $10,000. One of the most important things a life insurance policy can do is cover funeral costs so that your family does not have significant financial stress on top of the tragedy of your loss.
"The median cost of a funeral in the U.S. is $7,848 for burial and $6,971 for cremation, according to the National Funeral Directors Association."
Even with excellent medical insurance, uncovered debts can pile up after a short stay in the hospital and increase dramatically if you struggle with a long illness. Parents can be liable for unpaid medical bills in certain states that deem them responsible by law. Life insurance can make immediate payouts that will minimize this impact on your loved ones.
"Parents can be liable for unpaid medical bills in certain states that dem them responsible by law."
Loans and Other Debt
Private college loans, mortgages, and other co-owned debts don’t disappear when you are gone, and your parents or other family members may be responsible for paying them. A life insurance policy can alleviate the financial burden on your loved ones with immediate benefits after you pass.
Coverage for Every Stage of Life
Another advantage to buying life insurance when you are single? Typically lower premiums. It can be very cost-effective to purchase coverage while you are single at a low price, then buy more coverage as you pass certain life events: buying a house, finding a partner, having children, or whatever life has in store. Just as your needs change over time, your policy needs change as well.
When you are single, it can be tempting to think you do not need life insurance — but if something unexpected were to happen to you, your loved ones could be left with not only an emotional burden but a financial burden as well. Some expenses will need to be paid whether you are around to pay them or not. Life insurance provides protection for loved ones from these costs. Whether you are unmarried, without children, or happen to provide sole support for a large household, the right policy is out there for everyone.