If you’ve spent any time on the internet looking for life insurance, you’ve surely been greeted by pictures of happy families and small children. And, for the most part, the information is all about providing for your family’s future. If you’re single and have no children, this can leave you with the feeling that you don’t need life insurance for yourself.
Nothing could be further from the truth.
There are plenty of reasons why a single person would need life insurance. So, if you’re a single woman wondering “why do I need life insurance?” read on to find the answer!
1. Your Debt’s Cosigners
There are some debts, like federal student loans, that will not need to be repaid after you die. The government writes these loans off and does not seek collection for them.
But any cosigned debt still needs to be repaid. Private student loans, mortgages, car loans, jointly owned credit cards, or any other debt that has someone else’s name on it will become their responsibility after you die.
It’s a good rule of thumb to have enough life insurance to cover the cost of those debts.
2. Other Debts
Any other debts that you are responsible for will be settled out of your estate. This is often a complicated process that puts quite a toll on whoever is left to deal with it.
Term life insurance is inexpensive, making it a good option and a great way to ensure that all of your debts are covered. Shop around different life insurance companies to find one that suits you.
Doing this makes sure that your family and friends can handle your debts with the life insurance, leaving your estate to be taken care of according to your will.
3. Non-Child Dependents
Even if you don’t have children, there are often other people who will need you for their future, financially or otherwise. Whether it’s aging parents or a disabled sibling, if you were planning on helping these people, you need to consider them when planning your life insurance.
Figure out how much money you’d like to leave for this person, and for how long. Add that number to your life insurance coverage calculation to know how much you’ll need.
4. Business Partners
If you own a business with partners, those people depend on you to keep things going. When you form that partnership, you should always make plans for how to keep the business running if one of you should pass away.
In order to do that, each person needs to agree to get life insurance to keep the business going. This often complicates things, but talk to a financial planner about this when you start a business.
5. Future Family
If you’re young and you aren’t interested in children now or in the near future, but you are planning on them later in life, a life insurance policy now is a great idea. Life insurance is less expensive the younger and healthier you are.
Consider buying a 30-year policy now. It’ll be more affordable, and when you have children, you’ll have coverage in place. Even if you don’t need all of the coverage now, laying down that base is more affordable. And there’s always the option of adding more coverage when you do have kids.
6. You Live With Others
If someone else depends on your income to keep the household running, you’ll need life insurance to help them. Whether that person is a significant other or a roommate, it’s important to make sure that you won’t be leaving them without assistance should you pass away.
You won’t need to replace your income for years and years after you die for this instance, though. Just leave them enough to get through to the apartment’s lease before they can make a more affordable choice for housing.
7. Family History of Illness
If heart disease, diabetes, or genetic health conditions run in your family, get a life insurance policy now. While you’re still healthy and before you’ve been diagnosed with these conditions, life insurance will absolutely be affordable. But that assurance disappears if you have been diagnosed.
Plan for the future. If you want to have a family someday, try to cover them with insurance while you can still get the coverage. It’s always best to get rid of worry while you can.
8. End of Life Expenses
Even if you are debt free, have no plans for a family, and are completely on your own, you still need to consider life insurance. Someone, someday, is going to have to pay for your end-of-life expenses, like your funeral when you die.
Even a $10,000 or $25,000 policy should be more than enough to cover your end of life expenses. You don’t want your family or friends to go into debt over these expenses, so consider even just a small life insurance policy to cover them.
Do I Need Life Insurance?
Unless you’re a single person with absolutely no debt and a very significant savings account, the answer to the question “do I need life insurance?” is yes. In general, term life insurance isn’t terribly expensive, especially for someone in good health. For just a few dollars a month you can ensure that your family members are taken care of if you should die.
Set up your life insurance beneficiaries the right way, which can be hard if you’re buying to help protect multiple people. Match up your will and beneficiary list and be clear about who gets what and why.
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