Is Life Insurance for Single People?

Many people assume that life insurance is only for married couples and those with kids. While it is true that all single people may not need life insurance, there are some important reasons to consider it.

1. You have student loan debt. 

Debt doesn’t die with you. While the loans through the federal government are discharged or forgiven if you were to die, personal loans that have a co-signer are generally not. This means that if your parents or a sibling, for example, co-signed your student loan through a bank, they would continue to be responsible for paying the rest of the loan even if something happened to you. There are instances when the bank has called for the loan to be paid in full immediately following a death. You don’t want to leave your family members dealing with both grief and loan payments.

2. You have a mortgage.

If you’re a single homeowner with a mortgage, you should consider purchasing enough life insurance to help cover the home expenses should you die prematurely. If you die during the coverage term of your policy, the death benefit would be paid to your beneficiary, who could use it to help pay the mortgage and related expenses. With this approach, the money you have invested into your mortgage could still benefit someone after you’re gone. It’s an ongoing act of generosity and love.

3. You’re young and healthy. 

Age and health are two major drivers of how much you’ll be paying for life insurance. Why not lock in a lower price if you have both of those working for you now? Members of The American Institute of Architects, through the AIA Trust can benefit from excellent rates.  For example, a healthy 30-year-old can get $250,000 of Group Term Life Insurance coverage for under $12 a month–which is a doable amount. You don’t want to wait until a health issue or age puts life insurance out of your financial reach.

4. You’re living with your significant other. 

When you’re living together, most expenses become shared financial responsibility. Consider this example: You need both your incomes to meet the mortgage or rent where you’re living. Have you thought about what happens if there’s only one income? Would your partner have to sell or vacate and find a new place to live immediately?  This is just one example of many shared financial responsibilities couples have. Adequate life insurance can be an easy answer to those questions.

5. You plan on having kids…someday. 

It may not be now, but when kids arrive, so do expenses and bills. According the USDA, it costs $284,570 to raise a child to age 18, and that’s without factoring in the cost of college. Getting life insurance in place now means you have coverage in place for when you do have a child. Plus, you protect your insurability for the future – which leads to the next reason.

6. You know you’ll be taking care of family members in the future. 

This may mean aging parents or perhaps a special-needs sibling that you help to care for and support financially. What would happen to them if something happened to you and your support disappeared? Life insurance can ensure that there is money in place to fund those needs into the future.

7. It will pay for your funeral. 

No one likes to think about such things, but the truth is that when you die, someone will have to pay for your funeral. You wouldn’t want to leave your parents, a partner or another family member struggling with grief as well as paying for your funeral and burial, which can cost an average of $7,100.

If any of this sounds daunting, it’s important to know that it doesn’t have to be. You can start exploring the insurance options that the AIA Trust offers you as an AIA member through New York Life Insurance Company and Hagan Insurance Group. For more information call (877) 801 3727 or learn more.

The AIA Trust Life Insurance Program coverage is underwritten by New York Life Insurance Company. New York Life has the highest ratings for financial strength currently awarded to any U.S. life insurer from the leading independent rating services.