Single With No Dependents? Do You Still Need Life Insurance?

If you're young and single, you may assume you don't need life insurance -- even if you have debt, like a mortgage or student loans. While life insurance can be a saving grace for married couples (or singles with children) when an unexpected death occurs, the benefits for younger, healthier, and unattached applicants aren't as readily apparent. These benefits do exist, and before discounting life insurance you should make sure your decision is a fully informed one. Read on to learn more about a few specific situations in which purchasing life insurance at a young age could provide long-term benefits.

You have a family history of health problems

If you're planning to purchase a term life insurance policy, earlier is often better. If chronic but common health problems like diabetes, high cholesterol, or high blood pressure are diagnosed in your thirties or forties, you may find it impossible to purchase life insurance. In some cases, issues as minor as kidney stones or gallbladder attacks can be enough to prevent you from purchasing insurance or may put you into a high-risk tier if you are able to obtain insurance.

If you have a family history (or certain health habits) that can make you more susceptible to health problems, you'll want to purchase term life insurance at a relatively young age, so that you can lock in a low monthly payment for an amount of coverage that may not be available to you in a few years.

You have a negative net worth (not including student loans)

If you purchased your home at the height of the recent real estate bubble or have hefty consumer debt, a life insurance policy is a good way to ensure that your parents or other loved ones aren't stuck with a mess after your unexpected death. If your estate is insolvent, your heirs won't personally be on the hook for your debts but will still bear responsibility for sorting these issues out with your creditors and, in some cases, negotiating a short sale or deed in lieu of foreclosure with your bank.

You have a cosigned loan

If your parents or other relatives cosigned student loans, auto loans, or a mortgage to help you improve your credit, you owe it to them to purchase at least enough life insurance coverage to fully repay these loans if you pass away. Cosigned loans will die only at the death of both signing parties, so if you pass away before the loan is repaid, your parents will still be fully liable for this debt. If your estate takes a while to sort out through probate, they can find themselves in a cash crunch after suffering through an already painful loss.

Talk with someone at an insurance company like Watauga Insurance Inc to learn more about life insurance and how these policies can ensure nothing is amiss following a death.