One of the largest blind spots in the discussion of life insurance shows up when we talk about single people. Single adults have full lives with assets and loved ones to protect, yet they’re often glanced over when it comes to life insurance.
This begs the question, do single people even need life insurance?
The short answer is… YES they most likely do. Let’s get a closer look at some reasons why!
Reason #1: End-of-life expenses are costly.
Even if you don’t have a long-term partner, you still have family members who will be left with the bill for any end-of-life services. The average cost of end-of-life expenses and funeral costs in Minnesota is over $20,000. A life insurance policy can cover these expenses so your family and friends can properly grieve without the stress of signing the final checks.
Reason #2: Your debts can become someone else’s problem.
Whether it’s a cosigner on a student loan, another adult on a joint credit account, or someone you shared a mortgage with, there are many scenarios where your debts can be left to loved ones once you pass.
Any account, loan, or signed agreement that includes you and another adult can leave them responsible for paying the rest off. Life insurance can cover the remainder of your debts and ensure that no one is left paying off any debt you’ve accumulated in life.
Reason #3: Financial dependents need protection.
While “dependents” usually refers to children, the term really just means anyone that depends on your income to maintain quality of life. This can mean children for single parents, but it can also refer to disabled or elderly family members that depend on your income for their care.
If your income is necessary for anyone other than yourself to get by, life insurance is one way to ensure they are covered.
Reason #4:The earlier you purchase life insurance, the better.
Just like any other form of insurance, there are tons of factors that play a role in the type of life insurance you qualify for and the deductibles you may be required to pay.
Establishing your life insurance policy while you’re as young and healthy can provide far more policy options and help secure lower payments. By taking advantage of this, you can save yourself tons of money and stress down the road.
Reason #5: Your policy can benefit you in life, too!
While life insurance is generally used to protect any beneficiaries after your passing, whole life policies can allow you to cash out portions of your policy as well. This means that, with a policy already in place, you can have a guaranteed safety net in the case of any large expenses like a down payment on a house or college fees. These policies still include death benefits, but they also provide more options than many adults even know are possible with life insurance!
The bottom line is that life insurance is in the best interest of most adults, regardless of their relationship status.
While life insurance has a reputation of being for married adults with families, there are tons of people that fall outside of that umbrella that can still benefit greatly from having policies in place.
If you have any questions about life insurance or any other insurance needs, schedule a meeting with one of our team members to start a conversation about your options!