I’m single with no kids - do I need life insurance?
3 min read
If you’re single, you may think you don’t need life insurance. But there are some crucial times when it would be a good idea.
Most people who buy life insurance cover are looking to provide a financial safety net for immediate family when they’re not around. If you’re single, there are other ways you may need to lift a financial burden after your death.
You may think your debts die with you, but that is often not the case. If you have joint debts with a family member, dying without life insurance will leave them paying for the amount outstanding. For example, say you and a cousin borrowed money for a trip of a lifetime. If the worst happens before you’ve paid your half off, your cousin will be expected to repay the whole amount.
If they can’t, this can damage their credit history and affect their ability to get a mortgage in future, not to mention putting them under a huge amount of stress and worry.
While it’s always difficult when a loved one dies, there are pressing problems to solve, such as arranging a funeral – and paying for it.
The average cost of a funeral in the UK is £3,757, roughly £4,300 for a burial or £3,300 for a cremation (source: Royal London Funeral Index 2019). For many bereaved families that can be a large sum of money to find quickly, and an extra burden while grieving.
To save family and friends from having to worry about how to pay for their final resting place, many single people take out a small amount of life insurance to cover the cost of the funeral arrangements.
You’re a young, single, fit and healthy person, why would you need life insurance? Well, because all those things can change quicker than you think, and cost you big.
As age creeps up on us all, and we get into serious relationships and financial commitments, life insurance can start rising up our list of priorities. But in that time, our health can decline.
If you change your mind on insurance at a time when you have health issues, or are much older, the monthly cost of getting cover will jump. Life insurance payments are cheapest when you are young and healthy.
Buying life insurance early on may mean paying for it much longer. However, in the long term, this is the better option than finding yourself in a situation when you really want it, but for various reasons, find you can’t afford it.
Laura Miller is a freelance financial and business journalist with over a decade's experience, including lately covering the impact of coronavirus on business and jobs for ITV News.
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