Life insurance is a long-term benefit that everyone should consider. Even if you aren’t married or don’t have kids, it doesn’t mean your death won’t have a financial impact on others in the present and in the future. Consider purchasing life insurance when you are young and single for these reasons:
Support for Your Loved Ones
A life insurance policy is designed to protect your loved ones from having to pay all the bills, and help them cope with loss. If you’re single, there’s still a good chance you have others to worry about. Nearly 11 million families caring for children under the age of 18 are single parent households, according to the U.S. Census, including elderly parents and special needs siblings who require caretaking. And there are more than 43 million people in the US who look after older, ill or disabled family members and friends, according to a National Alliance for Caregiving and AARP study. A life insurance policy can be a big help to those who depend on you if you suddenly pass away.
Having a life insurance policy can also make sure you don’t pass on any substantial debts to surviving family members. Along with your personal debts, you may have co-signed a student loan or a mortgage with your parents or other family members. If you die before that loan is paid, they will end up owing the full amount. Consider a policy that doesn’t stick them with unexpected bills.
Cover Funeral Costs
When you die, funeral service costs will be expensive for your loved ones. An average funeral generally costs thousands of dollars. A life insurance policy can help ensure those expenses are covered and can help to ease the burden to your family, financially and emotionally, in their time of sorrow. Instead of dealing with bills, they can spend time grieving your loss and remembering your life.
Leave a Legacy
You may be single now, but buying life insurance can be part of your financial plan for the “future you.” Having a policy in place gives you a head start in covering a potential spouse or children. Life insurance also gives you the opportunity to leave a generally tax-free1 legacy to nephews, nieces, or other family members who come into your life later. You can also a buy a policy that you could leave money to a charitable organization, if that’s what’s most important to you. Whether you’d like to take care of someone financially in the future or leave a legacy to a charity1, purchasing a life insurance policy can help ensure that goal.
If you do buy a policy as a single person, you can build on your existing coverage whenever a big life event takes place, like getting married or having a child, so make sure to re-evaluate your coverage needs whenever you experience a big life event change.
Take Advantage of Cheaper Policy Premiums
Buying a life insurance policy when you’re young can be much cheaper than when you’re older. Waiting to get coverage until you’re older, married or have children can be costly. Similarly, purchasing a policy when you hit your senior years can often mean paying higher premiums, especially if you have health concerns. If you have serious health problems, you may also be deemed ineligible for coverage. By acquiring a life insurance policy early, you can obtain coverage while you’re young and in good health, and you can generally qualify for lower premium rates.