Do I Need Life Insurance if I’m Single?
Updated On Apr 28, 2021
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Life insurance is the best way to protect the family of the insured at the time of their untimely death. But does this mean that single people who have no family and dependents don’t require insurance? Not necessarily. Single people also require insurance to pay for their mortgage, their future financial expenses and also can offer cover for their family in case they wish to start a family in the future.
Reason Why Single People Should Opt for Life Insurance
1. To Pay for Student Loans
Single people who have no parents, generally take educational loans to fund their education. These turn out to be debts that are to be repaid by the insured. The student loans obtained from private banks will not be discharged in the event of the death of the insured. The witnesses will be questioned and be asked to repay the loans and the best way to avoid it, to have an insurance amount to pay for the loans.
2. To Pay for Mortgages
Single homeowners with mortgages should consider buying insurance with enough coverage for a sufficient term to pay for the debts. Upon the death of the insured, the death benefit of the policy will be paid to the beneficiary, and help them pay for the mortgage. The money invested in the mortgage could help someone upon the demise of the insured. People should choose a plan with a considerable length to pay for the full value of the mortgage. For instance, mortgages with a 30-year commitment can be paid with term insurance of 30 years.
3. Helps Pay Financial Dependents Who Are Not Biological Children
Even though the person is single, they could still support family members and relatives who are not biologically related to them. If they are added as nominees, the benefit of the policy can help them to pay for their living and health care expenses.
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4. Helps to Cover Funeral Expenses
Funeral expenses can be huge in India and the sum assured of the life insurance policy can be useful to meet these expenses. They can help the mourning friends and family to pay for the funeral charges without implying any financial burden on them.
5. Funds The Future Family, if Started?
People who are single in their 20’s and 30’s might consider starting a family someday. But if they opt for insurance at that age, it ends up at a higher premium. So it is better to opt for life insurance early, and this will surely help if they decide to have a family in the future.
6. Paying for Charity
Single and insured individuals can leave their legacy behind by allowing the insured amount to pay for charity upon their demise. Thus their money will be of use for the underprivileged in society.
People generally think that they require life insurance only during certain stages of their life, such as getting married, having children, while investing in a property. But single people require it as well. This becomes certainly important when people are depending on the income of the insured such as business partners, friends, or distant relatives.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.