Do I need life insurance if I’m single?

Just because you're a single person with no children or partner and no financial dependents , doesn't mean you have no need for a life insurance policy. Many people have loved ones, like ageing parents or a close friend, who may rely on their financial support. Taking out a policy can offer peace of mind, knowing that those you care about are protected even if you're no longer around.

A life insurance cover can help cover funeral expenses, outstanding debts, or leave money behind as a financial legacy, alleviating potential financial hardship for your loved ones . If you were to pass away unexpectedly, your assets, including your property, could be used to pay off debts such as a repayment mortgage, loans, or credit card debt. Having a lump sum payout from your insurance can ensure these costs are covered without forcing a sale of your home, preserving its value for your family members or other beneficiaries.

If you have no people who rely on you and your income, then there is obviously less direct need to take out a single life insurance policy. However, this does not mean that there is no need altogether.

One of the main reasons for purchasing life insurance is that it can help to protect your assets, and particularly your home. Once someone passes away, any debts that they owe (mortgages, loans, credit card debt, etc.) can be recollected by lenders, and this is usually done through claiming equity off of their estate.

This may often require their home to be sold off, as it is usually a person’s most valuable asset, and having a life insurance policy can mean that the payout is used to repay these debts rather than one’s assets. This means that your life insurance can be used to ensure that your property is protected and can be left to people that you care about.

If you are young and single, it is easy to forget that this situation may not last forever, and that you will grow older and may find a significant other and start a family.

When you sign up for life insurance, the amount you pay in premiums will be calculated by the risk you pose to the insurers. This means how likely it is that they will have to pay out sooner. Naturally, if you are younger then you will pose generally lower risk to insurers than someone aged 60 or over, meaning that you will usually be able to get cheaper life insurance deals.

A good thing to do if you are in this situation is to take out a long term life insurance policy, which could have you insured for 20 or 30 years, or a whole of life insurance policy, which will protect you for the rest of your life.  Taking out a policy when you are young and single will often mean paying far less in premiums than if you were to do so a decade later.

People over the age of 50 will be more inclined to take out life insurance than their younger counterparts, as they naturally approach the later years of their life. However, it’s not just those with families to look after that are taking out protection.

Over 50s life insurance policies can be a great way to cover end-of-life expenses, including funeral costs and paying any outstanding debts you may have. These types of policy are known as ‘whole of life’ policies, which means they’ll pay out whenever you die (there’s no end date to your cover).

Another thing that’s great about over 50s policies is that they promise ‘guaranteed acceptance’, no matter your health status and medical history. This makes them a great option for people with pre-existing medical conditions who may be struggling to find affordable life cover elsewhere. They are suitable for those who are UK residents aged between 50 to 85.