Life insurance offers protection for your family, particularly your spouse and kids, in case of sudden death.
This might be the reason most people consider life insurance after getting married or when they are planning for kids. This is the typical mindset of people.
But have you ever heard of life insurance for singles? It’s not so common.
However, life insurance is as important for singles as it is for married couples. Let’s have a look at a few reasons why buy life insurance while being single.
You have student loans
Research shows that more than half of the American students, 54% to be specific, are in debt. That’s a huge number.
So, this is why life insurance for singles becomes necessary to pay off the debt in case anything happens.
The importance of an insurance policy is amplified if you have a private student loan.
Federal loans can be adjusted or even discharged as per request but private loans have to be paid off.
For this reason, you can purchase life insurance to help your family financially. In case you are not here to pay off the debt, your insurance policy will take care of it.
The most beautiful things in the world cannot be seen or even touched. They must be felt with the heart. – Helen Keller
You have a mortgage
That is a good step in your financial future, but you should also have some backup plans.
What could be a better backup plan than life insurance?
Imagine you get a serious medical condition or even pass away, who is going to be responsible for your mortgage?
If nobody is able to take on these payments, the bank or mortgage company can take back and sell your home.
Mortgage life insurance and term life insurance can both be options to cover your mortgage in the event you pass away.
So act smart and get life insurance whether you are single or committed.
Someone else depends on you for their future
Life insurance becomes even more necessary if another person depends on you financially.
That could be your parents or a disabled sibling.
Make sure you do something to secure their future so they won’t be in financial trouble if something were to happen to you.
Only I can change my life. No one can do it for me. – Carol Burnett
You own a business with partners
If you are running a business with a partner and/or employees, you likely need life insurance.
Make a clear plan of what will happen if any of the partners pass away and how the business would continue running in such a situation.
For this, both business partners should have a life insurance policy to be on the safe side.
Discuss these things openly with your partner to avoid any kind of complications in the future.
You can also seek advice from professionals before taking to guide you in the right coverage for your business needs.
Someone will have to deal with your end-of-life expenses
Okay, let’s say you are leading the perfect financial life with no student loan and no mortgage.
You are financially stable and independent. There is still a reason you should consider a life insurance policy!
If you pass away, there are still funeral-related expenses someone will have to pay for.
The average cost of a funeral is between $7000 to $12,000 and this figure keeps increasing by every year.
It is not easy for anyone to pay this amount and it might lead your family or friends into debt.
If you don’t want this to happen, consider getting a small insurance policy to cover your final expenses.
When most people talk about life insurance, the image of a family and children often come to mind.
But life insurance is equally important for singles.
Given your financial situation, it could make sense to get an insurance policy, even if it is a small one.
If you are unsure, contact an experienced life insurance advisor to help look over what options are available for you.
This article is a guest post from Greg Rozdeba. All views and opinion’s expressed here are his own.
Thanks for reading, please let me know your thoughts and comments below.
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Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.