Singlehood is on the rise. According to the U.S. Census Bureau, almost half of adults (48 %) in the United States are unmarried in 2024. While there are many benefits to flying solo, there can also be misconceptions when it comes to financial planning.
One common misconception is that life insurance is only necessary for married couples or those with children. Life insurance for single adults can be just as important, offering valuable financial protection for themselves and their loved ones.
Why the Myth of “Singles Don’t Need Life Insurance” Persists
No Spouse or Children
The traditional image of life insurance beneficiaries often portrays a spouse or children. Single adults might not see the need for a policy if they don’t have dependents.
Financial Independence
Many single adults are financially independent and may not feel they have anyone who relies on their income.
Cost Concerns
Life insurance premiums can vary depending on factors like age and health, but some might perceive them as an unnecessary expense.
However, these assumptions overlook the potential financial burdens a single person’s passing can create.
Why Life Insurance Matters for Single Adults
Outstanding Debts
Student loans, car loans, mortgages, and even credit card debt can become a burden for loved ones if you pass away unexpectedly. A life insurance payout can help them cover these debts and avoid financial hardship.
Final Expenses
Funeral costs, medical bills, and other end-of-life expenses can add up quickly. Life insurance can cover these expenses without putting a financial strain on loved ones.
Aging Parents or Siblings
Even if you don’t have children, you might have parents, siblings, or other loved ones who rely on your financial support. Life insurance can provide them with a safety net if you can no longer assist them.
Business Partners
If you co-own a business, your passing could leave your partner in a financial bind. Life insurance can buy out your share of the business, ensuring its continued operation.
Future Plans
Perhaps you’re single now but might one day get married or have children. Locking in a life insurance policy at a young age, when you’re likely healthy, can typically guarantee you a lower premium and ensure coverage is in place when your future family needs it most.
Peace of Mind
Knowing your loved ones won’t be burdened financially in the event of your passing offers peace of mind and allows you to focus on living your life to the fullest.
Types of Life Insurance for Single Adults
Term Life Insurance
This, generally, affordable option provides coverage for a specific period (term) like 10, 20, or 30 years. If you die within the term, your beneficiaries receive a death benefit. Term life insurance is a good option for single adults who want to protect their loved ones financially during their prime earning years.
Whole Life Insurance
This permanent life insurance offers lifetime coverage and accumulates a cash value component over time. Policyholders can borrow against the cash value or withdraw it, providing additional financial flexibility. While typically more expensive than term life insurance, whole life insurance can be a good option for singles who want guaranteed lifetime coverage and the potential for future wealth accumulation.
Universal Life Insurance
This is a flexible type of whole life insurance that allows you to adjust your premium payments and death benefit coverage over time, making it adaptable to changing needs.
How Much Life Insurance Coverage Do You Need?
The amount of life insurance coverage you need will vary depending on your circumstances, financial goals, and budget. Here are some factors to consider:
- Debts: Calculate the total amount of outstanding debt you have.
- Final Expenses: Estimate the cost of your funeral and other end-of-life expenses.
- Financial Support Needs: Consider any ongoing financial support you provide loved ones.
- Future Plans: Factor in potential expenses like starting a family or caring for aging parents.
Take the Next Step
If you’re a single adult considering life insurance, life insurance specialists at TIS can help you navigate your options and choose the policy that best suits your needs. Don’t wait to take control of your future. Contact TIS today for a free quote! Discover how the right life insurance policy can be valuable in your financial planning journey.
