Do You Still Need Life Insurance If You Are Single?

Single with No Dependants? Find Out Why Life Cover is Still Important to Have

If there is one common misconception people have about insurance is that you cannot benefit from it unless you die. Most people believe that you get life cover only when you are married and have kids so you can leave something for them when you die. However, life insurance is not just for those who are married. Those who are young and single with other dependents, debt or a business may also need life insurance.

There is also no better time to buy insurance than when you are young, because that is when your premium payments will be at their lowest. Life insurance providers charge a higher premium rate to those who are already at their prime because the risk of contracting an illness that might attract a further cost is higher than when you are younger. The sad thing though is a lot of young people don’t see it this way. More often than not, when you are young you have this belief that you are going to live forever and life insurance is one of the furthest things from your mind. Moreover, other older people would advise the younger set to get insurance only after they get married. However if you examine the situation closely, nothing could be further from the truth as life insurance is most important at all stages of your life.

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Life Insurance for Single Women

Single women are no different to the rest of the population as far wanting to live life to the full is concerned. All our lifestyles are dependant a lot on what we earn but many of us, especially if we don't have dependants to worry about, tend to borrow in advance to get now, what we would have waited to save up for in grandmother’s day. This means it's not unusual to find single women with large debts on their credit cards, a late model motor car on hire purchase, a personal loan still being paid off for last year's overseas holiday and possibly even a mortgage. These debt are all well within the capacity to pay as single women often have well paying jobs but what happens if the worst possible scenario was to occur. What would be the situation if the single woman was to unexpectedly die?

If, like most single people, the enjoyment of life meant saving little, who would pick up the tab left behind to be paid? Would it be the ageing parents, a grieving boyfriend, grandma and grandpa? If your estate wasn't sufficient to pay all the debts left unpaid the creditors won't simply write them off, they'll demand payment and this could cause unnecessary financial hardship to a loved one.

This situation need never occur as this is what life insurance is all about. Life insurance for single women is just as important as it is to married women with children. A life insurance policy will pay all your final costs including your funeral and it will give you peace of mind knowing you'll leave no financial burden behind for someone else to have to pay on your behalf.

The younger you are the less you'll have to pay in premium costs so it's best not to procrastinate and get the cover you need while you still can at the cheapest price available.

Benefits of Purchasing Life Insurance When Younger

As most young people live with the feeling of invincibility – living life to the fullest without thinking of the consequences, it should be wise to remind yourself as a young person that no one lives forever. Furthermore, no one remains invincible or invulnerable to illness or injury - so much more, death.

However, aside from these reasons why one should get insurance, there are other important and valid reasons why getting life cover is necessary despite being young. Below are some reasons why:

  1. Funeral Expenses:  It is always thought to be in bad taste when people talk about funerals for the sole reason that no one wants to talk about death or face its reality. However, it needs to be addressed because if you take time to take a few minutes and contemplate what would happen if you died now - would your parents pay for your funeral or you have money saved for it. Even a cheap funeral will cost you quite a fortune these days. Moreover, if you bought a car on credit, who would pick up the tab for the amount left unpaid? Have you got any credit card debts that would be left for somebody else to pay? If you were to die while overseas who would pay to bring your body home? These are all valid questions and all can be taken care of with a suitable life insurance cover.
  1. Health: It is a given that most young people are healthy and active. Life insurance companies acknowledge this and take this into account when structuring your premium payments. In addition, it is also easy to be eligible for cover. As you get older, on the other hand, you might find it harder to get life insurance cover especially if there is any evidence of cancer or heart related diseases within your family.
  1. Cheaper premiums: The younger you are when you take out a life insurance policy the less premium you will have to pay. This is because you have a much longer time to pay your premiums and a lesser risk for dying – two ideal situations for insurance companies.
  1. Lifestyle: Given the fact that young people think they are healthy, they also take bigger risks than older people. This is probably because you don’t consider such things as dying as anything you should have to worry yourself about. However it is the very fact of you being young that means that you should protect those you love from being financially burdened as a result of your exploits, should something go wrong. There is a tendency for you to experience everything you possibly can as fast as you can – a predilection that could be quite dangerous.
  1. Business: You are young and you own a business. What is missing? You need business insurance as well as life insurance. Life insurance can be used to pay any outstanding debts you will leave behind that could be a threat to your business partner and loved ones when you die. If you want to leave your business to a friend or relative, the profits and earnings from your life insurance policy makes the transition easier.
  1. Charitable Causes:  If you have a pet charitable cause like animal rescue or breast cancer research, life insurance is a great way to make sure that the work you do in supporting that charity carries on after you’re gone. You can name your favourite cause as a beneficiary to your life insurance policy.

Although it may seem like you do not have anything to worry about since you are single, life insurance is a thoughtful gift for friends and family. Having life insurance means they don’t have to worry about anything when something happens to you.

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Rates last updated December 9th, 2016
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Maurice Thach

Maurice is a publisher for finder.com.au. Daily research of Australia's insurance offerings allows him to breakthrough the noise of the many policies out there to uncover what can (and can't) be covered. Maurice hopes to make finding the right insurance easier for all.

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