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Should I Have Life Insurance If I Am A Single Person?

Elaine Brookes Steve Case

Author: Steve Case - Insurance Expert

Reviewed & Fact Checked By: Elaine Brookes

Updated: 25th February 2024

single person life insurance

For those of you still single, you may be asking if you need some type of insurance coverage.

After all, you are not married and have no kids, so what is the big deal if you end up dying with no benefits, right?

It may seem reasonable, but everyone should have some cover, whether single, married, or without children.

What Is a Single Person Life Insurance?

As the name suggests, a single-person life insurance policy pays out a lump sum when the insured person dies. This money will go to the beneficiaries of the policy. They can be used to cover funeral costs and provide financial protection.

Depending on your type of single life insurance policy, you may also receive benefits while alive. Getting ill or injured, experiencing work-related risks, or wanting to secure your financial situation are all common and valid reasons to purchase life insurance for a single person.

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single adult life insurance

Life insurance isn’t just for those with dependents. Single individuals in the UK can also benefit significantly from a life insurance policy.

  • Financial Security for Loved Ones: Even if you’re single, you might have family members or close friends who could benefit from financial support in the event of your untimely passing. Life insurance can help cover funeral expenses and outstanding debts, alleviating financial burdens on your loved ones.
  • Debt Protection: If you have joint debts, personal loans, or a mortgage, a life insurance policy ensures these debts are not passed on to family members or co-signers, protecting them from financial strain.
  • Estate Planning: Life insurance can be a strategic tool for estate planning, helping to cover inheritance tax liabilities. This ensures your assets are distributed according to your wishes without leaving your beneficiaries to cover the tax bill.
  • Support for Aging Parents: For single individuals who provide financial support to ageing parents or other family members, life insurance can continue this support in your absence, ensuring they are taken care of.
  • Covering Funeral Expenses: The cost of a funeral can be substantial. A life insurance policy can cover funeral expenses, relieving your family from financial stress during a difficult time.
  • Peace of Mind: Knowing that you have a safety net can provide peace of mind for you and those who might be affected financially by your passing.
  • Affordability: Being single and possibly younger can work to your advantage, as life insurance premiums are generally lower for those who are younger and in good health.
  • Flexible Beneficiary Choices: You have the flexibility to choose any beneficiary(ies) you wish, whether family, friends, or a charity that is close to your heart, allowing you to leave a legacy in a way that reflects your values.
  • Career and Business Protection: If you’re an entrepreneur, life insurance can protect your business interests and any employees or partners relying on your contributions.

Considering these benefits, life insurance can be a wise financial decision for single people living in the UK, providing not only protection for their loved ones but also serving as a tool for financial planning and security.

single person life insurance quotes

Do I Need Life Insurance When I’m Single?

Some single people might think that life insurance policies are only valuable for people with spouses or children. But there are some instances when this type of coverage also makes sense for single people. Why should you consider buying a single person life insurance policy for yourself?

Avoid Leaving Family with Burial Debt

Burial costs have never been inexpensive, and that remains true today. Who can pay these expenses if you pass away with no benefits and no money in the bank?

In many cases, the immediate family members are left with this debt and are now grieving and faced with significant costs. If anything, obtain a policy that will cover the cost of your own burial.

Consider Any Estate Debts

Look at your current bills as well as your will. Even if you do not have any direct dependents, you may want to leave something for a niece or sibling. If you are deep in debt, the debt collectors are entitled to recover any money from the estate before it goes to the heirs.

For younger individuals, a term life insurance plan can be obtained to cover debt costs so heirs will still receive the money you envisioned when creating your will.

Do You Have Any Business Debt?

If you were in business, it would be unfair to leave a partner with debt if, for some reason, you were to pass unexpectedly.

All parties involved would be well served to have a policy in place that would cover the business debt so the partner could continue without worrying about how they would pay the business bills now that their partner has passed.

whole life insurance for single person

Thinking Of The The Future

You may be single now, but is that the plan forever? If you eventually plan to marry and have children, a whole life insurance policy will not only offer coverage but also provide investment for your future.

You may have more money now since you are single, and the slightly higher premiums may not strain your monthly budget greatly. If the policy is started early enough, it may be paid off when those wedding bells ring!

Significantly Cheaper Rates

As we get older, the costs of insurance go up. This is true for any type of policy, so it is wise to secure one while you are younger and the life insurance premiums are less.

In addition, it is much easier to get a policy when you are young and fit compared to being older and having health problems. Take advantage of this and get a policy now while it is affordable and easier to obtain.

You are young only once, and a life insurance policy may be the last thing on your to-do list, but this is a mistake.

Regardless of your budget, our team of insurance experts at Insurance Hero will be able to present the best policy to meet your needs and your budget. For more information and to discuss your cover options, give us a call today!

What Is Joint Life Insurance?

If you are looking for a policy for you and your partner, you may want to consider joint life insurance. Joint life insurance policies cover two people and offer many benefits. They are usually cheaper than two single policies; only one application process is needed.

A joint life insurance policy will pay out once after either one of the partners dies within the term of the policy.

With this type of coverage, the life insurance payout can help cover the costs of a funeral, childcare costs, and living costs. The coverage can also help pay out any outstanding debts, mortgage, etc.

Joint policy ends at the moment the lump sum has been paid out.

The monthly cost of such coverage is lower than two single life insurance policies. You and your significant other are insured for the same amount, and there is only one payment each month, making things easier in organising your budget.

Moreover, joint life insurance coverage is available for unmarried couples, and some policies offer a separation option, which means there is a possibility to split the policy in a situation when partners separate.

The details of such a clause may differ among various insurance companies, so it’s worth looking into with your insurance broker.

Experts at Insurance Hero will help you compare life insurance policies to find the best single-person life insurance coverage or joint life insurance policy that fits your needs and budget.

Life Insurance for Single Parents

When you’re a parent, your number one mission is to secure the well-being of your child or children. Especially if you’re a single parent, this task is not always easy. The cost of raising a child in the UK by a single parent amounts to £193,801.

In case of your death or serious illness, you want to ensure all of these costs are not falling on your relatives. An insurance policy for a single parent can help you take care of your dependent children.

The insurance policy can cover living costs, like household bills, mortgage or rent payments, childcare, education, and funeral costs.

A single parent may not have the support of a partner to ensure all of these aspects are taken care of.

Finding proper life insurance for a single person to take care of your family in various circumstances is crucial.

Level Term Life Insurance Policy for Single People

As level term life insurance is often more expensive than decreasing term life insurance, you might wonder if it’s worth it as a single person.

With the level term life insurance cover, your premiums stay the same throughout the term of the policy, while a decreasing term life insurance cover pays out less the more time has passed.

It’s common for this type of insurance policy to be used to pay the balance of a repayment mortgage, as with time, the mortgage decreases and can be paid off fully as the term of a policy ends.

Both policies can protect you for a specific period, for example, 10, 20, or 30 years. The choice between the two single policies will depend on your needs.

Suppose you want to purchase a life insurance cover that will guarantee financial support for your dependents in many different scenarios.

In that case, you may want to lean towards level-term life insurance. Although its premiums are higher, the payout is also more substantial.

Decreasing life insurance for single people may be a valuable option if you want to secure your mortgage or you have other circumstances which would require some type of temporary protection that decreases with time.

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Critical Illness Cover for Single People

Critical illness cover is an insurance policy worth considering, regardless of relationship status. It protects you in case of a serious illness or injury.

If you fall ill during the term of the policy and your illness is included in your insurance, you can receive a lump sum that can cover the costs of treatment, medical equipment, household bills or mortgage payments, etc.

It’s a great help when you’re the most vulnerable and need the support to recover and not lose your financial stability.

Life can be unpredictable, so this type of single person life insurance is one of the most practical insurance policies you can purchase.

Compare the plans from leading insurance companies and find the best coverage with Insurance Hero.

Single Person Life Insurance FAQs

Is it better to get single or joint life insurance?

If you’re in a couple, it is more cost-effective and less complicated to get joint life insurance cover. You buy one coverage that protects two people. The insurance pays out if one partner dies. You can expect lower premiums in comparison to two single policies, in which overall costs are higher.

Joint life insurance is a better deal for couples, as there is only one application process and one monthly cost.

Can single people have life insurance?

Of course, they can! Not only that, but they should think about some type of coverage to protect their assets, their financial dependents and themselves. Life insurance policies are a valuable way to secure your financial standing or leave money to your family members or a close friend in case of your passing.

You can provide money to cover the costs of living for your loved ones, as well as funeral costs.

Do I need life insurance if I don’t have a mortgage?

Whether you need life insurance or not will depend on your life circumstances and financial situation. Even when you don’t need life cover to protect your mortgage, you may want to buy life insurance in order to secure your dependents in case of your death or secure yourself and your family members in case you get diagnosed with some severe illness.

If you’re unsure whether life policy makes sense for you right now, contact us to see what options are available and how you can benefit from them.

Can I take out single life insurance to leave an inheritance?

Yes, a life insurance policy may be an inheritance for your loved ones. The significant upside to it is the fact that most policies pay out money that is tax-free, which means the beneficiaries can receive an inheritance without the need to pay the inheritance tax.

Life insurance for a single person can help you secure the future of your friends and family, so even if you think you won’t benefit from it right now, it might be a great way to ensure a more stable future for your heirs.

Final Thoughts

Single life insurance is a valuable type of coverage that can help you take care of your loved ones after your passing. Single people benefit from different insurance coverages the same way people in couples or marriages do.

If you’re the only breadwinner of your family or a single parent, investing in a good life policy may save you a lot of nerves and financial turmoil down the line.

Compare many life insurance policies and trust the experts from Insurance Hero.