Life insurance is one of those things that we all know we should have, but many have a difficult time determining when the right time to get life insurance is.
Schools and universities are notoriously poor at financial and life insurance education, so our website is here to answer all your life insurance-related questions.
Should you get life insurance if you are single? Yes, you should get life insurance if you are single to cover final expenses, protect dependents, guarantee your future insurability, and take advantage of living benefits for critical, chronic, and terminal illness.
Life insurance is not just for married people, which is a common myth.
Single people are raising children, caring for aging parents, and always run the risk of contracting a critical illness themselves.
The top life insurance companies offer valuable protections for everyone, including living benefits for healthy single people with no dependents.
Additionally, life insurance is so inexpensive that there is really is no reason not to carry at least some coverage.
See for yourself by using our free rate comparison tool to browse the rates of over 30 top-rated life insurance companies in the United States.
Feel free to skip ahead to any section that interests you.
- Top 5 Reasons You Should Get Life Insurance if You Are Single
- Plan for the Future
- Build Cash Value
- Living Benefits
- Final Expenses
- Final Thoughts of Getting Life Insurance if You Are Single
Top 5 Reasons You Should Get Life Insurance if You Are Single
There are plenty of reasons to get life insurance if you are single, but we have narrowed down the list to the top five reasons you should carry coverage.
1. Protect Current or Future Dependents
Just because you are single doesn’t mean you don’t have anyone who relies on your income.
According to US census data, single-parent families have steadily increased, making the impact of losing a parent even more financially devastating to a child.
It could mean having to move to another school district away from their friends, or not getting into the college of their choice because they don’t have the money.
If you have children, life insurance is a critical component of any well-designed financial plan.
Even if you don’t have children, long-term care for aging parents with chronic illnesses is becoming more common as well.
The hard truth is that most long-term care is administered in the home by relatives and is usually unpaid care.
Unfortunately, there is no way to predict if your parents will become your dependents in the future, but waiting until the last minute is not a strategy.
Life insurance is not designed for the predictable; it’s designed to protect your loved ones from the unexpected.
If you wait until the last minute, it is often too late.
2. Plan for the Future
The best time to buy life insurance is when you are young and healthy since you can lock in a low rate for term life insurance or permanent life insurance.
Most life insurance guarantees the death benefit at a specific monthly rate for a time period ranging from ten years to a lifetime policy.
During that period, you select, the life insurance company cannot increase your premiums or lower your death benefits.
If you wait and want to get life insurance with a pre-existing condition, your rate can increase considerably, or you may be unable to get life insurance at all!
Locking in a million-dollar life insurance death benefit today gives you a policy that you can grow into, for example, if you want to buy a home in the future.
Getting mortgage protection life insurance can be expensive if you wait, but if you build it into your financial plan, you’re prepared the minute you buy a home.
Many people plan on having children or settling down with a partner.
Whether it’s higher education, or family protection, locking in a great rate for a large amount of coverage when you’re young and healthy is just wise financial thought.
If you qualify for no-exam life insurance companies, you can even avoid the hassle of the medical exam and get your policy within days instead of weeks.
3. Build Cash Value
When you are young, permanent life insurance is usually more affordable.
When you are supporting a family, you usually need a high amount of death benefit protection for a temporary amount of time.
Therefore we typically will recommend term to keep the coverage budget-friendly and suggest adding a second smaller permanent policy for permanent needs.
However, if you currently don’t have any dependents, it may make sense to buy a large amount of permanent life insurance that builds cash value while offering you death benefit protection.
The cash value grows tax-deferred within the policy and can be removed through tax-advantaged loans.
The loan is secured by the death benefit of the policy, so you don’t need to pay it back if you don’t want to.
The life insurance company will just remove the loan from the death benefit owed to your beneficiary when you pass away.
You can structure your cash value life insurance policy to grow the death benefit as you accumulate cash value.
Participating whole life policies accomplish this through paid-up additions that get reinvested within the policy.
You can also have an increasing death benefit option in an indexed universal life insurance policy, as well.
As the policy generates cash value through the indexing strategy, your life insurance policy death benefit will increase dollar for dollar.
As you save more within your policy, your need for term insurance in the future may be significantly reduced or eliminated.
4. Living Benefits
Life insurance companies like American National Life are on the bleeding edge of innovation when it comes to life insurance with living benefits for critical and chronic illness.
Living benefits allow you to advance a portion of your death benefit while you are still alive if you get a critical illness on chronic disease, as stated in your contract.
Every life insurance policy has different triggers, but the three most common triggers are cancer, stroke, and heart attack are usually included.
The number one cause of bankruptcy in the United States is medical bills, and life insurance with living benefits help you avoid that fate.
Once the benefit is triggered, you get a lump-sum of cash when you need it the most that can be used for anything ranging from medical bills to your mortgage.
Life insurance with living benefits helps ensure that when you beat cancer, you don’t need to start over again financially.
5. Final Expenses
Everyone will die at some point in there life, but dying isn’t cheap.
I recently buried a relative of mine, and when everything was said and done, we owed over $13,000!
For many Americans, coming up with that kind of cash at a moment’s notice can be difficult.
The last thing that you want is to be a burden on your children and family when you pass.
Final expenses and burial insurance pays cash quickly to your loved ones outside of probate.
By leaving your family life insurance, you protect them from having to quickly sell your house or your belongings at a bad price to pay for your funeral expenses.
Final Thoughts of Getting Life Insurance if You Are Single
If you are single and on the fence about getting life insurance, we hope this article showed you why it still makes sense to get coverage.
No one knows what their future will bring.
If you’re able to get life insurance coverage today at an affordable rate, then it is time to check life insurance off of your to-do list.
Nowadays, with living benefits and no-exam life insurance options available, it’s a no-brainer.
Take a look at the cost of no-exam and living benefit life insurance options with our free rate comparison tool that displays the top life insurance companies on the market.