Life Insurance for Singles? 4 Situations to Consider


Life Insurance for Singles? 4 Situations to Consider on

Life insurance isn’t a good choice for all singles– but more of them can benefit than you might think

If you’re single– especially if you’re in your twenties, you might think that purchasing a life insurance policy isn’t a decision you’ll need to make for at least a few decades. However, in many circumstances, life insurance can save you and the ones you care about significant financial stress. In fact, if you have serious debt or believe you may develop a serious medical condition later in life, purchasing a good life insurance policy early on can potentially save you and your family hundreds of thousands– and sometimes even millions of dollars.

Below, we’ll discuss four situations in which purchasing life insurance may offer a serious return on investment– no matter what your relationship status.

1. You have significant student loans or other debts to pay off– and a loved one is your cosigner

Tens of millions of young people are collectively bucking under America’s more than $1 trillion dollars of student loan debt– and that’s before factoring in the hundreds of billions of credit card debts, car payments, medical debt obligations, and layaway loans from retailers that young Americans also hold.

While many types of debt are dischargeable upon the death of the debtor, student loans aren’t. That means if a family member cosigned on your loans, they could be responsible for paying them back if you suddenly pass away– and, in the case of a tragedy, paying bill is the last thing you want your grieving family members to have to worry about.

Even if you only have other types of debt (kinds that are dischargeable upon the holder’s death), lenders and debt collection companies may not necessarily get the message that your family members aren’t legally responsible for it– and they may harass them with aggressive phone calls, letters and emails for a long time. In many cases, debt collectors have convinced individuals to pay off debts of dead family members for which they were no longer responsible– another outcome you want to avoid.

2. Your income currently supports children, siblings, parents, or other family members

Even if you’re young and single, that doesn’t necessarily mean that others aren’t relying on you– or might need to rely on you for future financial support. So, even if you’re only supporting yourself now, if a loved one suddenly incurs large medical expenses or loses much of their savings on a bad retirement investment, they may need your assistance to keep up their quality of life and to avoid being forced to sell major assets, like homes, cars, or retirement portfolios. If you’re no longer living, you can’t help– but a life insurance policy could seriously aid loved ones through a variety of difficult situations.

3. Your family could go through significant financial strain to pay for funeral costs

The average funeral often costs $10,000 or more– and while it might seem morbid to think about this kind of stuff, it can be seriously tough for many families to shell out that kind of money on short notice. This is especially true if they’re also trying to pay for some of your other costs, such as medical expenses and other debts.

4. You expect that you might develop a serious medical condition in your 30s, 40s, or 50s

While you might be healthy as a horse in your early twenties, it’s a good idea to look around your family tree for any medical conditions that you might be likely to inherit– especially conditions that might arise earlier rather than later. Purchasing life insurance for a decent price can be incredibly difficult if you have a pre-existing condition– so even if you think there’s only a small chance of you developing an inherited disorder, purchasing life insurance early and locking in a good rate can save you a lot of grief later in life.

When it comes to life insurance, weigh your options and make an informed choice for your individual situation

Life insurance isn’t really about your needs– it’s about protecting those closest to you from financial disaster and distress should anything happen to you. Therefore, it’s important to accurately gauge your risk of leaving debts, expenses, or financially needy loved ones behind to make a smart choice about whether or not to buy it. For some singles, it’s still far too early for life insurance to make financial sense in the foreseeable future– while for many others, life insurance isn’t something they need immediately– but it’s something they’ll want to consider purchasing within the next 2 to 3 years.

To learn more about how insurance can protect you and those you care about at every age, contact Avante Insurance today for a free consultation.