If you live alone, perhaps you would think that having life insurance is not so important. You don’t have to secure anyone in case something unexpected happens with your life. But let me show you some situations when getting a life insurance policy makes sense.
1. You have student loan debt – usually, your parents are guarantors, so your student loan balance will become their responsibility, even if the understanding was for you to make payments entirely on your own.
2. You run a business – If you take out a business loan, you may be required to get a life insurance policy with the lender as the beneficiary. It may also make sense to get a personal life insurance policy if you’re in business with a partner.
3. You have financial dependents – If you’re a single parent or you have other financial dependents — like elderly parents or a sibling — then life insurance should be a priority. It can be a smart move even if they don’t live with you but rely on you for some support. Whether you provide financial support, like paying for their housing or groceries or support them with your time as a caregiver, your death would create a significant gap in their quality of life. Getting life insurance would leave them money to continue getting the help you provide.
4. A life insurance policy can also serve as an inheritance. You could leave the money to a family member or a charitable organization. If you want to leave behind a legacy for the people and causes you love, then it’s the right time to buy life insurance.
How much life insurance do I need if I’m single?
Wondering how much life insurance you need? The answer depends on your specific situation. If your goal is to cover any outstanding debt that may be passed to someone else, your current balance is a good starting point. When you want to continue financial support for a business or a loved one, consider a multiple of your income that could cover them for a set time.
Being single doesn’t mean no one relies on you. Consider the full scope of how you can impact the lives of others, whether it’s with money, time, or your business expertise. From there, you can get a sense of what size policy makes sense, given your specific needs.
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