If you are single, you are wholly responsible for making your own financial decisions and you want to ensure you make the right ones. One of the smartest financial moves that you can make is to purchase a life insurance policy. Buying a life insurance policy lets you plan ahead for the future and ensures that you don’t inflict financial hardship on the people who are left behind if you pass away.
Why do you need life Insurance if you are single?
Being single does not mean that you do not have people depending upon your income. If you have any family members who you are helping to financially support, your death could have a devastating impact on their financial security. You need to ensure you have the necessary life insurance coverage to provide a death benefit for all of your dependents so they can pay their debts and bills and have the income they require after you are gone.
Even if you do not have people depending upon your income now, you may have people depending upon you in the future. You could marry or enter into a partnership, have children, or become responsible for helping to support elderly parents in the future. If you have purchased life insurance when you are young and single, you will benefit from lower premiums and a wider choice of policy options. You will ensure that you can have the insurance coverage you need in the future when it becomes necessary to have coverage to financially protect those you love.
Life insurance also ensures there is money available to pay for your funeral if you pass away. If you do not purchase a policy, the family that you leave behind could end up having to spend thousands of dollars of their own money for your burial. This can cause significant financial stress and resentment in a difficult time when your loved ones should be free to focus on their grief.
Finally, many life insurance policies provide the opportunity to have a lump sum benefit paid out before your death if you are diagnosed with a terminal illness and have 12 months or less to live. A terminal illness can make it impossible for you to work and can lead to significant medical expenses. As a single person, you may not have anyone who can shoulder the financial burden if you find yourself very sick. A life insurance policy ensures you have the money necessary to be comfortable.
What kinds of life insurance should you buy when you are single?
Most singles benefit from the purchase of term life insurance coverage. Term life insurance coverage allows you to designate a beneficiary who will receive a lump sum payment when you pass away. This lump sum payment can be used by your loved ones to pay off debts, provide income that you used to contribute, or fulfill any other financial obligations. Term life insurance also makes it possible to receive payment upon diagnosis of a terminal illness.
If you do not want a term life insurance policy, you can explore other solutions such as funeral insurance. Funeral insurance is a lower cost policy option that provides a lump sum benefit specifically intended to pay for funeral costs and burial expenses. Most policies guarantee that the payout for a funeral policy will be worth at least as much as the amount of premiums paid in.
How much life insurance should you buy if you are single?
The amount of life insurance you need to buy is going to vary based on what you plan for the policy to do. If you have dependents and you want to ensure they are taken care of, you should buy enough coverage to allow the people you love to pay off their debts and set aside money in investments to provide ongoing income. Think about your current dependents as well as those who may become dependent upon you in the future like an aging parent or a future spouse. A financial planner can provide assistance with deciding how much coverage it makes sense for you to have.
What should you look for in a single’s life insurance policy?
When you shop for single’s life insurance, pay attention to both premiums and coverage. You want the policy to be affordable for you but also provide enough of a benefit to make a difference to those you love. You also want to make sure that the policy allows for an early payout for a terminal illness so you will have the added peace of mind of knowing the money is there if you get sick.
Do not hesitate to start shopping today for a single’s life insurance policy. You can check different insurance companies to find out about coverage and premiums and can select the policy that is right for you.
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