Do I Need Life Insurance If I'm Single?
Have you thought about how you will pay for your funeral or take care of any debts you have as a single person after you pass? Do you want to leave a payout to beneficiary?
As a single person, you can also use life insurance to help grow your wealth.
Talk to your Western life insurance expert about how life insurance can benefit you if you are single. We have the knowledge and expertise to guide you through this process.
As a single person, it’s easier to get life insurance when you are young and healthy. The cost of your life insurance will likely be lower than if you wait until you’re older.
Life insurance can benefit you if you’re single and it can help protect your loved ones from any financial burdens.
Top reasons for getting life insurance as a single person
- You want to lock in coverage: Your rates will be based on your age and health. The longer you wait to purchase a life insurance policy, the more expensive the policy will be. The amount of life insurance you need will depend on your goals for its use.
- You have debt: You may have credit card debt, student loan debt, car loan debt or a mortgage that is not paid off. If you have life insurance, it can help cover the remaining payments of your debt.
If you have a co-signer for any loans, the financial responsibility of paying off the debt may fall to your co-signer after your passing. Having a life insurance policy can help cover the remaining payments.
- You want to cover your final expenses: Life insurance can be a way to pay for your funeral and other end-of-life expenses or arrangements. Keep in mind that a traditional funeral usually costs thousands more than a cremation.
Term life insurance and permanent life insurance can cover funeral costs. Talk to your Western life insurance expert about how life insurance can help you with final expenses and which type of insurance is right for you.
If you're older and single, final expense insurance is available to those in their 70s and 80s and it will cover your end-of-life expenses, so your estate isn't burdened with those costs.
- You want to leave a payout to a beneficiary or charity:
You can name a beneficiary such as a family member or friend in your life insurance policy.
You can also name a charity or organization as your beneficiary. Or you can split the death benefit between different people and organizations.
- You want to grow your wealth: Life insurance can also benefit you while you are living if you have permanent life insurance. Permanent life insurance gives you a death benefit, but it also accumulates a cash value on a tax-deferred basis. You can use the accumulated cash to increase your wealth, buy a home, cover an emergency expense, or supplement your retirement income.
Speak to your Western life insurance expert about how permanent life insurance could benefit you as a single person.
- You have a business: If you own a business, a life insurance policy can help keep the business going after you pass. The death benefit could be used to hire someone to replace you or allow a partner to buy the business or provide for employees.
Ask your Western life insurance expert whether your business would need term or permanent life insurance.
- You’re supporting a family member: If you are single and supporting your parents or another family member, life insurance can help provide for them if you were to pass away unexpectedly.
How much will I pay for life insurance as a single person?
If you're health is average for your age and your risk factor is low, expect your monthly premiums to be lower. Advancing age and health problems usually increase the cost of your monthly premiums.
It’s a good idea to have as much life insurance as you need to pay off your debts with interest, especially your mortgage and any consumer or student debt.
Discuss your situation with your Western life insurance expert to get the right coverage for your situation.
If you are single and planning to get married: You’ll need to update your life insurance to reflect your new personal situation.
Speak to your Western life insurance expert about what kind of life insurance you should have once you are no longer single.
Difference between term and permanent life insurance
Term life insurance: It is fixed-year coverage that provides the beneficiary you choose with a tax-free payout if you die within the term you choose, such as 20 or 30 years. That money can also be used to pay off any remaining debts such as a mortgage. The payments you make are set for the term you choose and do not change in that time period.
Permanent life insurance (also called whole insurance): It is guaranteed life-long coverage. When you pass on, your beneficiary receives a tax-free payment. It is more expensive than term insurance because the policy for permanent life insurance does not expire.
Western Insurance has over 40 licensed LIFE INSURANCE EXPERTS across Canada. Our experts are available now in branch or on the phone to help you navigate the life insurance journey that will give you the right policy to protect yourself, your investments, and your family.
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