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You’re single, not mingling – seriously at any rate, and you’re financially independent with no financial dependants. So, you don’t need life insurance - right? Maybe not. You know that shopping trip you took your mom on and the medication you bought for your brother? That’s financial support and your family would miss it if you were no longer around.
Life insurance will pay a lump sum to your beneficiaries if you pass on, making sure they can meet these expenses and don’t suffer too much financial hardship if you are no longer around to help out. It’s a great financial legacy singles can leave their family and loved ones. And in some cases, life insurance is more than a legacy – it’s a necessity. Here are 5 reasons why you need life insurance if you’re single.
1. You financially support your family and extended family
Whether you help out with groceries and medical expenses or give financial support to a family member who retires or is retrenched, you are financially supporting your family. A lump sum pay-out from a life cover policy can make sure this financial support continues if you are no longer around.
2. You have debt
When you die your debts, including car finance, a home loan, credit and store cards, and money you borrowed from family members, need to be paid. If there are no credit life policies in place, life insurance pay-outs can be used to pay for these debts when you pass. You can read more about credit life cover.
Life insurance isn’t always a nice to have – sometimes it’s a necessity
3. A parent or family member has stood surety for a loan
If your parents stood surety for a loan, such as a student loan or a loan to start your own business, they would have to repay this loan if you passed on. To make sure you don’t burden the person who stood surety for you with your debt when you die, you can take out life insurance so that the pay-out can be used to pay off the loan in full.
4. Your life goal includes having children
If you plan on having children and want them to be provided for if you die, it makes sense to take a life cover policy when you are young as there is a good chance it will be cheaper. This is not only because young people tend to have lower premiums, they are also less likely to have a chronic disease such as high blood pressure, which can increase insurance premium. And when the family does come along, you will have one less financial matter to worry about and a life insurance premium will already be part of your budget.
5. Your estate costs money to wind down
Your financial affairs don’t end when you die, they end when your estate is wound down. This is when all your assets are sold or distributed to your heirs and all your debts are paid. Winding down an estate takes time, effort and money. For example – bank accounts need to be closed and assets and possessions need to be distributed or sold. The costs involved in winding down an estate can add up to a substantial amount. It makes sense to provide for this by having a life insurance policy so the pay-out can be used to cover these costs.
Two top tips to make yourself even more financially secure
Singles don’t only need life cover; they also need funeral cover and disability insurance.
- Funeral cover can make sure your family can afford to give you a dignified and respectable funeral if you pass on
- Disability insurance will pay a lump sum to deal with the extra expenses of disability such as car and home adaptations, or replace an income if you can no longer work because you are disabled
If you’re single you should be mingling - with insurance
There you have it, 5 good reasons why you need life insurance if you are single, and some tips to secure yourself financially with funeral cover and disability insurance. These insurance policies can go a long way to ensuring your and your family’s financial independence and well being should you pass on or become disabled.