The Insider’s Guide to Life Insurance
Is Life Insurance Necessary for a Single Person?
Life insurance often isn’t necessary for an unmarried and childless person. But there are some circumstances when, if single, you should still consider purchasing a policy, as financial dependents can come in all shapes and sizes.
If you have significant cosigned debt, such as student loans that would fall to your parents or loved ones if you died, then you may want to consider term life insurance to cover your debts. Most federal student loan debt is forgiven in the event of death. However, not all private student loans work this way. If you have private loans, your co-signer, often a parent, could be left with those debts if you died. The same goes for any other cosigned loans, such as a mortgage.
Parents shouldn’t be left to mourn their child while simultaneously paying off loans that have been passed on. It’s imperative to know where your debt would go if you died and if you need to protect cosigners financially.
If you’re single and still unsure, you can use our life insurance calculator to help determine if you need coverage. Don’t worry; we’ll let you know if you don’t need coverage.