Do you need life Insurance if you are Single?
It is generally accepted that life insurance is necessary if you are dependent on your income, but what if you are single? Depending on your situation, it may not be needed, but there are still some reasons why it might be worthwhile to buy life insurance.
The main purpose of a life insurance policy is to provide a lump sum payment as a replacement for your income when you die. If you do not have dependants who depend on this income, you may be less inclined to buy life insurance, whereas it is generally highly recommended for single parents. Some reasons to consider life insurance include
Your debts have co-signers
Part of your debts will be paid off at your death, but otherwise your assets could be used to pay off the remaining debts through probate, i.e. the legal administration of your estate after your death. Unfortunately, a co-signed loan means that the co-signer (usually the parents) is held liable for the remaining debt. However, a life insurance policy can be released from creditors by paying out directly to the beneficiary. Paying out a life insurance policy can therefore make it easier to settle the debt after your death.
You have other beneficiaries
Apart from a spouse or children as dependants, you may have other people in your life who could be beneficiaries. Your aging, low-income parents, close friends or siblings with a disability could benefit your policy and give you peace of mind that they will be taken care of when you die.
You will not be single (or healthy) for long.
The two main factors for low life insurance premiums are your age and state of health, and some medical conditions may increase your premiums or exclude you from certain policies.
If you are in your twenties and think that a partner or children could be part of your long-term future, a life insurance policy you take out at your young and healthy age will have much lower premiums. This can be especially useful if your parents have or have had hereditary health problems such as heart disease or diabetes.
Pay for your funeral
If you die, who will pay for your funeral? Dying can be expensive, and if you don't have life insurance, Policy Genius may require someone else to pay for your funeral, which, according to Policy Genius, can cost up to $10,000. Your benefits can be used to cover these costs.
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