Single people who don't have children might think they don't need life insurance because no one is relying on their income. But there are a few good reasons to take the plunge now and buy life insurance when you're single.
Existing Debts: Paid
Do you have debts that add up to more than what's in your checking or savings account? Most of us will answer yes to that question. What happens to that debt if you die? Some of it will be forgiven, but it's also possible that some private loans won't be (and this includes many private student loans). Who would be left behind to pay that debt for you? A life insurance policy would make sure the people you leave behind had liquid assets to remove those debts. Those proceeds can also go to anyone you've co-signed a loan with, so they aren't responsible for the full burden of the debt all alone.
Final Expenses: Paid
If you died tomorrow, who would pay for your funeral? Even a simple ceremony could cost a couple thousand dollars. Without life insurance, your parents, siblings, or other relatives would have to pay for this out of their own pockets. Some family members might not be able to afford this. If you had a small life insurance policy, with a face value of just $10,000 or $20,000, it would give your relatives the money they needed to pay for your final expenses.
Future Health Problems: No Worries
It's no secret that life insurance costs more if your health isn't good. Chronic illnesses like arthritis or serious illnesses like cancer can send costs skyrocketing. If you have a family history of cancer or heart disease, it's possible these conditions could affect you in later years. If you wait until then to buy your policy, you could be turned down for coverage or charged a rate higher than you'd like. On the other hand, if you bought your policy now, you can lock in the lowest rates available. Insurers love young, healthy people who represent very little immediate risk, and often reward them with rates below $30/month.
Life insurance can also help you during retirement. That may be a long way away, but it never hurts to plan. Check out the video below to see how life insurance can make your financial future stronger: