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Why a Single Person Might Need Life Insurance?

Why a Single Person Might Need Life Insurance?

If you’ve ever considered getting life insurance, most of the information you read includes:

1. Pictures of parents and their smiling children

2. Information directed at retired, married couples

Most life insurance is marketed to people who fit in with the above narratives. But that doesn’t mean single individuals with no kids need not apply.

Even if you don’t have children, you can still benefit from life insurance. Luckily, you don’t need more than a small policy that often comes with a low price.

So, why should you get life insurance? Read on to learn more.

You have a mortgage

If you pass away during the term of your mortgage, your life insurance policy will pay out to your beneficiary. This way, you can ensure your loved ones will have the ability to pay your mortgage and keep the home.

In this case, you should choose a term life insurance policy (different from mortgage life insurance) that lasts until your mortgage is paid off and covers your outstanding balance. 

You need to pay off student loans or co-signed loans

Some debts disappear when you die. But many debts, like many private student loans, may carry on to your co-signers or dependents. That means should you pass away; they will be on the hook for the rest of your debt.

It’s not just student loans that may fall into this category. Jointly owned credit cards and any other co-signed debts will also be passed on. A simple term life insurance policy can cover these debts at a relatively low monthly cost.

You have other financial dependents

You don’t need to be married or have children to have dependents. You may have disabled parents, siblings, or cousins. If you’re helping a dependent financially, it can make sense to get life insurance with them as a beneficiary.

You live with others

If you don’t live alone, life insurance can help your roommates or family members to afford to your shared household or move out.

This step isn’t like getting life insurance for other dependents. You don’t need to replace your income for their expenses. But you may want to leave your housemates enough to handle their expenses until your lease end or they find a more affordable living space.

You have business partners

If you’re starting a business, you will often end up taking on a business loan. Often, life insurance is a requirement for securing a loan. That way you can list your lender as a beneficiary should you pass away.

Of course, your business partners would lose a lot if you passed away. On top of your contributions to the work it takes to grow the business, your financial contributions would also be lost. Life insurance can help you make sure your partners have enough money and time to overcome the challenges that your death could create.

Life insurance effectively provides businesses with contingency plans. Many businesses aren’t dependent on just one person. So, leaving your business partners enough to make it through your absence would go a long way for each of them and for your business. 

You want to cover final expenses and leave a legacy

If you want to leave a mark on the world, children aren’t the only way to leave something memorable. Of the many different types of life insurance, whole life insurance can help you leave the exact mark you’re aiming for.

A life insurance policy can ensure money goes to a worthy charity of your choice. Or, you can contribute to or establish a scholarship program. There are many ways you leave your financial mark on the world. Life insurance just makes sure you can if you pass away unexpectedly.

Is Life Insurance right for you?

The value of life insurance depends on your situation. But there are many reasons single individuals should consider getting a policy. If you’re not sure, you can always speak with a life insurance advisor online.

You might not feel you need a life insurance policy now. Considering the situations where you may want an insurance policy can help you prepare for the unexpected.

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