Six Reasons Single People Need Life Insurance Too
Episode 338 - Do single people really need life insurance? Here are six good reasons why they might.
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Transcript of Podcast Episode 338
Hello, this is Bill Rainaldi, with another edition of Security Mutual’s SML Planning Minute. In today’s episode, six reasons single people need life insurance too.
Not long ago, in episode 333, we talked about why young people should consider life insurance. There are also a few reasons why someone who is single—whether young or old—may want to consider getting life insurance. Here are six of our favorite reasons.
1. You have a mortgage or other debt. It’s not just a mortgage. It could be student loans or credit card bills. If someone co-signed some of your debts, these debts could become your family’s responsibility. Do you really want someone else to be saddled with your debt if something happens to you? Losing you would be tough enough.
Life insurance can help cover these debts so your family won’t have to worry about them. They’ll have enough worries as it is.
2. You have dependents. You might not have kids, but are there others depending on you financially? Maybe your parents, siblings, or even some their children? Life insurance can help them. It can help provide financial security if you’re not around. And it doesn’t have to be complicated. Even, let’s say, a 10-year term policy—listing that individual as a beneficiary—could be helpful.
3. You want to cover your final expenses. In 2025, an average funeral costs somewhere between $7,000 and $12,000.
[1] What if your parents are your heirs and they have very little in savings? Your funeral could be a significant financial hardship for them.
4. You want to lock in a good rate. Premiums are generally less when you buy a policy when you’re young and healthy. Even if you’re not so young anymore, you’ll be a year older next year, and it’s only a matter of time before your health could potentially start to decline.
Whether it’s term or permanent life insurance, regardless of what type of coverage you need, premiums are likely to be less today than they will be in the future. Buying a policy before major health issues arise gives you a chance to lock in a lower premium. This is especially beneficial with permanent coverage.
5. You’re a business owner. Let’s say you have a partner in a business. What happens to you if your partner dies, and what happens to your partner if you die? In spite of your best efforts, the business might not be able to continue without proper planning.Perhaps a buy/sell agreement could fill the void. With a simple cross-purchase arrangement, your partner buys a life insurance policy on you, while you buy one on your partner. If something happens to either one of you, there is a source of cash to buy out the deceased partner’s interest. The deceased partner’s heirs, rather than receiving a portion of a (perhaps illiquid) business,
