Do You Need Life Insurance if You’re Single?

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Similar to other insurance coverage, a life insurance policy provides financial protection. While home, auto, and health insurance all provide the policyholder with benefits, a life insurance policy provides beneficiaries with money if the policyholder passes away. Life insurance creates financial protection for spouses, dependent children, and other family members if the unexpected happens to the policyholder. A death benefit can be used to pay off debts, provide supplemental income, or take care of other financial obligations. Usually, people with dependents who rely on their income consider life insurance to provide financial protection for their loved ones.

When looking for life insurance, many people understand the importance of comparison shopping. From evaluating rates and policy options to vetting insurance companies, using an insurance comparison service will let you find the best options. Using a comparison service will save you time and money by pulling quotes from various companies like Banner Life Insurance and allow you to understand all of your options. Since life insurance is a good idea for those with families and dependents, many single people wonder if they need coverage.

While comparison shopping and looking for insurance quotes is a good idea for someone wishing to protect their family, many people who aren’t married don’t think life insurance is worth it. Surprisingly, however, many financial experts agree that there are some situations where life insurance is a good idea for single people. Let’s look at a few scenarios where life insurance might be a good fit for single individuals.

Student Loans

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On average, Americans with student loan debt owe around $30,000. Depending on your school and level of education, you might have a significantly higher student loan balance. In many instances, parents, family members, or others have cosigned on student loans or taken out supplementary loans to help students go to college. If you have a cosigner on your student loans, they might be on the hook for those payments if something happens to you. While federal student loans are usually discharged if the borrower dies, private loans will pass to co-borrowers. Even if you are single without children, you may consider a life insurance policy to help pay off your student loan debts.

Mortgage Payments

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If you are a single homeowner with a mortgage, you might consider purchasing enough coverage to help pay off the loan. In many situations, parents or others have cosigned on home loans for younger borrowers. A cosigner helps young borrowers get lower rates and better loan terms. If you are in this situation, a term life insurance policy might be a good idea. Term life insurance is valid for 10, 20, or 30 years and can provide protection to cover your mortgage should something happen to you. Similar to student loans, if you have a cosigner on your mortgage, they may be responsible for the payments if the unexpected happens to you.

Final Expenses

While death benefits are usually designed to allow loved ones to pay off debts or provide support and supplemental income, the lump sum payment can also be used to pay for funeral expenses. Final expenses can range from $7,000 to $10,000 on average. Whether you are married or single, someone will have to cover your funeral costs should something happen to you. Although the topic may not be pleasant, especially if you are young and healthy, you might consider discussing this with your loved ones to determine the financial need. A term life policy or whole life plan can be used to help cover your final expenses.

Life has a way of changing quickly. If you’re currently single, financially secure, and debt-free, you might not require life insurance. For those with debts and other financial questions, it might be beneficial to consider a term life or whole life policy for the sake of your family members. Shopping around for life insurance quotes is the best way to find a policy and premium that fits your needs.

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