Why a Single Person Should Buy Life Insurance

Free Insurance Quote Comparison

 Secured with SHA-256 Encryption

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Full Bio →

Written by

UPDATED: Jul 16, 2021

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

If you are single you may be thinking that life insurance at this stage of your life would be a waste of money. You don’t have any people who rely on you for financial support, and you probably are not thinking about your end of life planning at this stage in the game. However, there can be some benefits of life insurance that a single person can take advantage of.

Why Buy Life Insurance when Single

When people think of life insurance, they often assume that it is only a useful tool to keep families financially afloat after the loss of one of the parents. But purchasing an affordable life insurance plan while you are single can have many advantages including:

  • Locking in a good Life Insurance rate: you can get an affordable life insurance plan when you are young and healthy at a very reasonable cost, and lock that rate in for a long term policy. This can be very advantages if you go on to be married or have children. Purchasing a level 30 year term life insurance plan while you are 25 years of age will allow you to pay the same amount for thirty years! This same coverage will end when you are 55 and last through the years when your need will probably be the greatest-raising children, mortgage, spouse, etc. You can always supplement with more insurance, layering different terms to extending you well into retirement.
  • Creating a legacy: Life insurance is often used for legacy planning. Imagine how many people both in and out of your family could be helped with the death benefit from your policy. You could put your nieces and nephews through college, pay off your parents’ home and send your siblings to graduate school. You could even leave your death benefit as a charitable contribution to a cause that means a lot to you.
  • Paying off debts after your death: If you are single and own a home or have a car note or credit card, your death will leave that debt on your estate. Life insurance can be used to cancel any debt giving the person that you have left in charge of your affairs time to make important decisions, such as sale of a house.
  • Helping with the continuation of a business or the care of dependent parents: Life insurance can protect any business interest you may have or help with the continued care of elderly parents after your death.

TIP: The best life insurance plan is one that fits your needs and stays within your budget. Ask a life insurance agent if you could benefit from a good policy even though you are single.

Insurable Interest

It is possible for someone else to take out an insurance policy on your life in order to provide for them financially should you pass away. If someone other than yourself were to place life insurance on you, they would have what is call insurable interest.
A person with insurable interest is a person who will experience an emotional and/or financial loss when the other individual dies. As a single person, there are many people who will feel an emotional loss at your passing including your parents, siblings and other family members. In addition, since you are likely to pass on some debt to your estate, there is a financial need to fulfill upon your death. This could be your next of kin who would be financial responsibility when you pass away. If a person with no insurable interest would like to insure your life, you would have to give permission by signing the application for insurance.

Your Hobbies and Traveling can affect Your Single Life Insurance

Many singles live riskier lifestyles since they are not responsible for the health and well being of a spouse and children — and that could affect an underwriting decision. For instance, as a single person you may take vacations or business trips to more dangerous locations which could result in your life insurance application being declined. Or, you may take part in activities like bungee jumping or deep sea diving that is dangerous and could affect your ability to get a life insurance policy. You could also end up with a rated policy premium, where you have a higher premium because of your riskier lifestyle.

TIP: Although these risks can cause an increase in premiums, it is best to be truthful on the life insurance application. If you are not and you should die within the contestability period of the life policy and it was determine that a material misstatement was made, your death claim could be denied. This would mean your beneficiary would received no money!

Other Factors in Life Insurance for Singles

Another factor considered by underwriters when determining whether or not to issue your life insurance policy is moral turpitude. Moral turpitude describes your everyday conduct. If you use drugs or consume a lot of alcohol on a regular basis, then your moral turpitude could be questioned and the situation could result in a high premium or your application could be denied (this could be the case whether you’re single or married). In the age of social media, many employers have turned to reviewing a person’s online profiles. Life insurance underwriter could do this as well. Therefore, think twice before posting that picture of yourself drinking, smoking, or otherwise engaged in behavior that cause your premiums to increase.

Securing your Death Benefit

Don’t be afraid to make every effort to ensure that your life insurance death benefit is used as you want it to be. Your life insurance company or agent can help you determine whether your bequest is reasonable and compliant with insurance company insurable interest requirements, and the law. If you are using life insurance as a financial planning tool, consult an experienced attorney to make sure that you properly set up any trust accounts for your estate and beneficiary.
Obtaining the best life insurance plan now while you are young, healthy and single is a good idea. It helps to lock in rates for the future and secure a life insurance plan that will carry you for many years. If you are unsure, talk to a life insurance agent about which type is the best life insurance plan for you. A reputable insurance agent can guide you in making the right decision and build a life insurance plan that will cover your insurance needs, suit your goals, and fit your budget. When you are prepared to purchase life insurance, start by shopping for several quotes to compare. To get a quote on life insurance from Free Advice, click here and being shopping!

Read more articles to help you find the right life insurance policy for your needs by clicking here.

Free Insurance Quote Comparison

Enter your ZIP code below to compare cheap insurance rates.

 Secured with SHA-256 Encryption