Why Get Life Insurance

Understanding Single Person Life Insurance

There are some valuable reasons why you need life insurance even if you are single with no children, such as paying for funeral expenses and supporting elderly parents.

Single Person Life Insurance

A common misconception is that a single person without children doesn’t really need to buy life insurance. This is primarily built on the premise that single people typically have no financial responsibility towards anyone else but themselves. But if you’re single, you may want to decide if you need life insurance and how that can benefit those you love.

Covering your outstanding debts

There are many ways as a single person that you could use life insurance to take care of financial obligations that might potentially burden those you love should you die unexpectedly. For example, do you have outstanding balances on credit cards or a vehicle loan? Has a family member or friend cosigned on a student loan or mortgage on your behalf? If you were to die unexpectedly, who’s going to satisfy these obligations?

If you’re thinking that your creditors will simply write-off the debt, think again. Having outstanding debts means that your estate will have to deal with what you owe. And any loans supported by a cosigner means that the people you love and who have helped support you, would now be on the hook. Life insurance could help release the people you love from the financial burden of cleaning up your debts when you die.

Paying for your funeral

What is final expense insurance? Paying for funeral/final expenses is something everyone needs to plan for. Even the most basic of final expenses can cost upwards of $6,000.1 You may not want to think about the inevitable while you’re still alive, or even care about what happens to you once you’re gone. However, the people who are left to cover your final expenses (including the possibility of outstanding medical bills) care. The fact is, when you die, those that love you will need to have readily available cash to pay for these very real, and very immediate expenditures.

The truth is, funerals and final expenses can’t wait – this means that the money will need to come from somewhere. Imagine your family having to pull from their savings accounts, having to take out a loan, or establishing some type of payment arrangement with the funeral home that could burden them for years to come. You might want to consider final expense insurance to help cover these costs.

Helping to support others

Even if you don’t have children, you may have a special needs family member or even elderly parents who might require extended support as time goes on. Although you’re not obligated, the support you leave for them in the form of a life insurance policy can help provide the needed funds to meet these special needs. You may also have a nonprofit organization that you would like to see carry on the good work that they do after you’re gone.

Being single doesn’t necessarily mean that you are total void of financial obligations that could burden your loved ones. Even with a small life insurance policy, you can ensure that those you love will have the readily available cash needed should you die unexpectedly.

1. http://funeral-tips.com/funeral-costs-how-much-does-an-average-funeral-cost/

Was this article helpful?

All Learning Center articles are general summaries that can be used when considering your financial future at various life stages. The information presented is for educational purposes and meant to supplement other information specific to your situation. It is not intended as investment advice and does not necessarily represent the opinion of Protective Life or its subsidiaries.

Neither Protective Life nor its representatives offer legal or tax advice. We encourage you to consult with your financial adviser and legal or tax adviser regarding your individual situations before making investment, social security, retirement planning, and tax‐related decisions. For information about Protective Life and its products and services, visit www.protective.com.

Single Person Life Insurance

Single person and life insurance sometimes aren't immediately connected. You may think that a single person doesn't have a need for life insurance. The fact is, having a life insurance policy can be very important for a single person. Just because you aren't married doesn't mean that you may need to help your loved ones cover your outstanding debts, funeral costs, or even leave enough money to help care for a special needs sibling or ageing parents. As a single person, life insurance can shows those you love that you care enough to plan ahead after you're gone. For more information, visit our learning center.