Yeah, it’s true that most people who consider buying life insurance have families. After all, they want to make sure their family or dependents are taken care of should something happen. But what if you’re single?
People aren’t getting hitched like they used to, and the U.S. birth rate continues to reach record lows as more and more people are opting to postpone parenthood, have less children, or live completely child-free altogether.
So, if you’re single, does that mean you don’t need life insurance?
Why Single People Still Need Life Insurance
There are lots of reasons why you might purchase life insurance, even if you don’t have a partner or family.
1. You Have Debt
If you are a new homeowner with a mortgage, or have private student loans, business loans, credit card debt, or any other personal debt, you might want to consider a life insurance policy.
Did your parents cosign a hefty student loan for you to go to law school? They’ll still be on the hook for that $200,000+ student debt if you were to pass away, unlike federal student loans, which would be forgiven.
If you have a cosigner, a second borrower on a mortgage, another authorized user on a credit card, or a joint bank account, the other account holder will still owe the debt as well.
Moreover, if you’ve willed your estate to your loved ones, they may not receive your bequests. Your estate is responsible for paying your debts after you die, so if it’s important to you that your house remain in the family, or that a particular family heirloom goes to someone specific, it might be worth it to consider an insurance policy that could help cover your debts.
2. You Have Friends And Family Who Depend on You
Just because you are unmarried or don’t have children doesn’t mean that people don’t count on you. If you have aging parents, siblings that have special needs, or other family members that depend on you, a life insurance policy can help provide them with some financial stability.
Designating a beneficiary on a life insurance policy is pretty simple. Generally speaking, if anyone in your life has an insurable interest — meaning that they would suffer a financial, emotional, or any other type of loss because of your death — you can name them as your beneficiary on your life insurance policy.
If several people depend on you, like both of your parents or multiple siblings, you can designate them all as primary beneficiaries and allocate the death benefit accordingly. The death benefit is the amount of coverage you elect when you buy the policy (between $100,000 and $1.5 Million if you’re a Bestow customer), and you can choose to split it equally or assign different percentages. It’s up to you.
3. You Want To Cover Final Expenses
Don’t forget about end-of-life care, medical bills, funeral costs, or family member travel expenses. Average end-of-life fees can be upwards of $10,000, depending on where you live.
If your friends and family receive enough money from your life insurance coverage, they can focus on dealing with their grief rather than the stress of final expenses.
4. You Own a Business
If you have a small business with a partner, your death could significantly hurt the company, as well as your partner’s financial future. A life insurance policy could help give both you and your business partner peace of mind that your business may have some protection if you die.
Moreover, if you plan to apply for business loans to help grow your company, most lenders require that you have a life insurance policy to ensure they’ll be paid back.
5. You Want to Lock In a Low Rate Now
Life insurance premiums become more expensive as we age and our mortality risk increases (spoiler alert: we don’t live forever). If you’re young and healthy, you may qualify for a 10 or 20-year term life insurance policy at lower premiums for a coverage amount that helps take care of all of the above.
For example, with Bestow, you can apply for a term life insurance policy online without a medical exam and with rates starting at just $11 a month. You can apply right now and, if approved, purchase up to $1.5 million in coverage to help provide some financial protection for the bright future ahead.
Get A Life Insurance Quote Today
So what’s the bottom line? Even if you’re single today, you might not be in a few years. Life changes quickly, and so do your insurance needs. Whether you are single or married with two kids, you likely have people who depend on you. If any of this rings true, you may consider looking into life insurance.
Check out your options with a free life insurance quote right now. Get a personalized estimate with Bestow in seconds, and complete our 100% online application in minutes.