You hear it all the time: If you have a spouse, children or other family members who depend on your income, you need life insurance. While this is certainly true, it can lead to the misconception that life insurance is unnecessary for single people. Unless you plan on never acquiring any debt, having any funeral expenses, or succumbing to an accident or medical condition, you need life insurance â€“Â even if youâ€™re single. Here are three reasons to buy life insurance regardless of your marital status.
Debt Trumps Death
If youâ€™re single with no dependents and pass away with outstanding debt, that debt will only be canceled if you have no assets in your name. If, however, you own a car, a home, stocks and bonds, CDs, or any type of bank account, any and all of these assets will be seized in order to pay off your debt. If you co-signed a student loan or a lease for a car or a home with your parents, they will be held responsible for paying off the loan â€“Â or any outstanding car or rent payments â€“ in the event of your death. A term life insurance policy is an easy and affordable way to pay off your debt â€“Â and ensure that your family members wonâ€™t have to clean up any financial messes you might leave behind.
Funerals Cost Money
According to the National Funeral Directors Association, the average cost of a funeral is over $7,000. How can a funeral possibly cost that much? Each funereal service has a separate cost â€“ and they add up fast. Most funeral homes charge a nondeclinable basic services fee of nearly $2,000 right off the bat. Just moving a body to a funeral home costs $285, while the embalming and other preparations will run you another $1,000. Factor in another $400 for the viewing, $500 for the ceremony, $300 for a hearse, $2,400 for a casket, and $1,300 for a vault, and you start to get a sense of how expensive a funeral really is. Even worse, all of these costs will be assumed by your family â€“ unless you have a life insurance policy in place to cover these expenses.
The Younger You Are, the Lower Your Life Insurance Premium
Term life insurance premiums are mostly determined by your health. The younger you are, the healthier you tend to be. The healthier you are, the lower your premium. With term life insurance, you pay the same premium for the life of the policy â€“ even if you experience an accident or a sudden change in health. And while you may be single now, you probably wonâ€™t be for the rest of your life. Doesnâ€™t it make sense to lock in a low premium now so you wonâ€™t have to pay more later?
Life insurance is NOT just for people who are married with children. Itâ€™s important for single people to be aware of the risks they are taking by not having life insurance, not to mention the financial hardship that may be in store for their next of kin should something happen to them. Even if you have no dependents at the moment, youâ€™re better off investing in a life insurance policy sooner rather than later.